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195

should be dealt with at an carly dato.

$5.

REPLACEMENT OF EUROPEANS BY CHINESE.

The Commissioners

havo considered the dilution of subordinate members of the foreign staff and arc in favour of it. The hoads of sub- dopartments of the Public Works Departments word on the whole hostile to it, giving as their reason that the Chinose were liable to bribery. The Commissioners howover firmly believe that graft is not confined to the Chino so employcos of Government but is more widely spread than is generally thought. In view of the success of Mr. Rood (Survey Department) and Mr. King (Electrical Department) in training Chinese subordinates for their sub departments, the Commissioners are convinced that equally good results could be obtained in other departments if a really serious and general attempt were made.

34.

The Commissioners feel it their duty to point out that any steps taken to secure the cmployment of local mon may moct with what may be called "Trade Union" objections, which objections should be disregarded, particularly in view of the prosont economic position.

35.

NOTE BY UNOFFICIAL COMMISSIONERS.

Hong Kong's

problems are almost entirely municipal and very possibly tho most trenchent form of cconomy would be a change to municipal Government such as obtains in Singapore and every other city of any magnitudo in our Colonial Empire. Two reasons may

perhaps be advanced against such a change. The first is that Hong Kong's problems being so very largely municipal, the Secretary of State would probably, at any rate in the

first

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