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quarters and rent later on, and I will now do so. Your Lord- -ship's predecessors have expressed the view that this
Government should endeavour to construct quarters for all
European Officers, and an effort is now being made to do so.
The cost of building in this Colony is, however, so much
greater than in the Straits Settlements or Federated Malay
States that it is impossible to obtain an adequate return on
suffraient the cost of a well built house of an adequate size without
charging a rant, which would defeat the purpose aimed at. I indicated in paragraph 10 of my Despatch No. 301 of the 23rd.
X October, 1918, covering the Estimates for 1919, that by
providing houses the Government would not only receive the rent laid down, but would also save the payment of allowances in aid of rent, and this view was adopted by the Secretary of
State when the large expenditure on quarters was approved.
The Commissioners recommend rather higher, rents than have hitherto been charged, namely, $100, 880, 860, and $50 a month, in place of 860, 350 and 840, and in consideration of the increase proposed in salaries and other privileges, I an inclined to agree with them. I also concur with the re- -commendations as regards free quarters for all the Officers specified on pages 7, 8 and 9 of the Report (Schedule II) except in the case of those under the head "Merical Staff" who should in my opinion be charged 850 a month.
In the case of Officers on dollar salari-
-es whose domicile is in Asia, I recommend that free quarters should be provided as opportunity offers. I am aware that for some years past in the Federated Malay States such Officers have been charged a low rent but with the increased cost of living I consider that it would be better to make the concession of free quarters than to raise salaries. Many of these Officers are improvident and to increase their salaries would only tend to develop extravagant habits without any
compensating