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Colonial Secretary's Offi08,

Hongkong, 6th July, 1917.

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CONFIDENTIAL

sir,

With reference to your letter of the 29th June

I am directed to inform you that the memorandum enclosed in my letter of even number of the 15th June embodies proposals which have received the approval of the Secretary of State, 18 & measure of temporary relief pending the extension to officers in the higher grades of the service of the principle of the privilege of quarters either free of rent or at a moderate rent which has already been applied to the lower grades of the service.

It is recognised that at the present time a revision of salaries is not desirable and the relief proposed is confined to those whose burdens are greatest.

Hia xoellenoy the Governor is glad to lear′′T] that the unofficial members are in favour of a revision of salaries, and I am to take this opportunity of informing the unofficial members of both Councils confidentially that in a despatch just received the Secretary of State has requested that on the conclusion of hostilities His “roellenoy the Governor will give the question of a revision of the scales of salary in the public departments of Hongkong his serious consideration and report the conclusions at which he may arrive at with as little delay as the nature of the enquiry permits.

I am &o,

(sd.) Claud Severn,

Colonial Secretary.

The Honourable

Sir C. P. Chater, C...G.

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