5.

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"During the past seven years the rates of pay of clerical assistants in Chinese firms have on the whole

increased by one-third as compared with the rates prevailing during the previous seven years, and in some cases the increase has been as high as 50%. This has been due to the higher cost of living. But against this increase in salary, the bonus paid by firms has during recent years decreased considerably owing to the

stagnation of trade. On the whole we consider that the

rates of pay of the Government's Chinese Civil Servants

as specified in your letter, are better than those at

present paid by Chinese firms to their clerical

assistants."

That the remuneration of the Chinese Clerical Staff compares favourably with remuneration outside Government Service is also clear from the fact that there is keen competition to enter the Government Service and that the quality of the recruits is much higher than it was several years ago. The prospects in the Clerical Service have also been improved by progressive annual increases in the relative numbers of the higher posts during the last few years and a definite

programme of further increases covering the period up to 1932 has been adopted. On this point the President of the Hong Kong Chinese Civil Servants Club writing on 15th February, 1928, states:-

"In conclusion, I have the honour to express on

behalf of members of the Clerical Service their thanks to

the Government for the proposed scheme of creating more

high class posts in 1928."

I have, however, very grave doubt whether

the system of such increase in the relative numbers of the higher posts is sound and the matter in my opinion needs

careful reconsideration.

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