363

to this there is a chronic difficulty in "making both ends

meot", the Service is bound to be unpopular, and therefore

to deteriorate to the disadvantage of the Public interest.

6.

Sir Henry May does not advocate

any increase in the dollar salaries, but urges that the

Sterling Salaries should be raised to the equivalents of

the existing dollar salaries, a course which will involve

but little increase of expenditure, since the higher posts

are all held by "dollar officers". It will, however,

involve some increase in the junior posts. The total

increase in expenditure is only £720 to £900, and the

actual amount of increase in 1911 is £651.

7.

My proposals do not affect Non-

-Cadet Officers, for the salaries of officers of this class

have from time to time been readjusted, and are on the

whole satisfactory at the present time though they will

always be subject to changes in accordance with the law of

supply and demand, in order to enable this Government to

engage and retain for a reasonable time the services of

men with Technical Qualifications.

8.

I attach for Your Lordship'

S

.consideration a Table showing (a) the present salary in

dollars of dollar officers, and in sterling of sterling

officers

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