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2.

GOVERNMENT HOUSE,

HONGKONG. 28th. December, 1916.

You 49377/16

I have the honour to acknowledge the

receipt of Mr. Bonar Law's despatch No. 276 of the 26th. October regarding the Memorial forwarded by Mr. J. H. Franco.

When the Widows and Orphans' Pensions Scheme

first came into force, officers were required to contribute upon the value of their quarters, such value being at that time reckoned for purposes of the officer's om pension.

3.

Subsequently it was made the rule that the value of quarters was not to be counted for pension purposes, with the proviso in respect of officers in the Service at the date of the new rule that such officers might retain their former privilege until their next promotion. About the same time the practice of requiring officers to

contribute to the Widows and Orphans' Pensions fund upon

the value of their quarters was discontinued.

4.

Mr. Franco, by promotion, lost his former right to reckon the value of his quarters for pension purposes; but it was considered inequitable to require him,

and other officers in similar case, to forego the right to

continue to contribute upon such value to the Widows and Orphans' Pensions fund; and the matter was left to the

discretion of the officer concerned. Had Mr. Franco 90

desired, he could have discontinued his contribution in

THE RIGHT HONOURABLE

WALTER LONG, M. P.,

&c.

&o..

respect

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