102

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Order 117 would apply to all officers on the new terms

as to quarters.

4.

In paragraph 10 of my confidential (2)

despatch of the 4th April, 1938, I stated that I was

deferring any recommendations as regards the salaries of

Administrative officers of Class I, on the assumption

that the existence of that Class will continue. The

Anomalies Committee now recommends (paragraph 24(a) of Report) an incremental salary of £1450 by £50 to £1600,

plus free quarters and a fixed acting allowance for

Administrative officers acting in Class I posts of £200

per annum. They also recommend a salary of £1700 per

annum for the Secretary for Chinese Affairs and a duty

allowance of £150 per annum to be added to the new salary

approved for the Colonial Secretary.

5.

No exact calculation of the financial effect of

the proposals now submitted has been made. The general

effect of the new scales will be a reduction of

expenditure on personal emoluments and, to a still

greater extent, a reduction on pensions.

Concessions in

individual cases are recommended which will reduce the

immediate economies to be expected but it was never

anticipated that the new scales could be applied without

any modification to serving officers. The net effect is

that no increase on actual previous expenditure, even

temporarily, is anticipated but there will be some small

increase over the expenditure which would have been

incurred if the new scales had been applied without

modification.

6.

Some difficulty arises as to the date or dates

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