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Colony in which they are serving".

3.

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Further that on 6th May 1910 we (being then employed in the Comptroller and Auditor General's Department) received a des- patch from the Comptroller (No. 187) inviting us to transfer to the new department on terms which included paragraph 13 of the Report cited above, and we accepted that invitation.

4.

We would also bring to your notice that on accepting our appointments under the Colonial Audit Department we had to give up various official rights and privileges and also the claim to be allowed to revert to the Home Civil Service. These privileges were given up on the understanding that the tenets of the Report of the Colonial Audit Committee would be observed.

5.

Thereupon the undersigned Assistant Auditor (T. Dallin) was appointed to Hongkong on July 30th, 1910 at a salary of

4420 rising to £540.

6. This scale of salary was equivalent to that assigned to Third Class Cadet appointments in Hongkong at that time.

7. The undersigned Second Assistant Auditor (G. Cormack) was transferred to that office in Hongkong from the Gold Coast on 15th August, 1912, at the rate of pay cited above (£420 to £540).

8. In December 1910 Mr. Stubbs was sent out by the Colonial

Office to investigate the question of salaries of officers in

Hongkong and elsewhere. As a result of his visit it was decided in July 1911 to introduce into Hongkong the system of duty pay already in force in the Straits Settlementa and Federated Malay States. The rate of duty pay adopted and still in force was

for First Class Cadet Officers £150, Second Class £120 and

Third Class £100. At the same time the scale of pay of

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