16

26

(iii)

(iv)

(v)

to serve under their oxisting torms of service, or of accepting the terms of service recommended in this Report;

as the whole implication of the principle of expatriation pay is the lack of a suitable local candidate we imagine that the necessity of special recruitment from India must gradually disappear. In the same way the necessity of resorting to special recruitment of officers from China can arise only rarely in practice. Here again we can imagine a case where it is essential to get a "specialist" from, say, North China, in which case, of course, tho payment of expatriation pay would be reasonable;

we therefore recomiend expatriation pay in accordance with tho principles above stated for certain officers already recruited from India and North China, i.e. Indian officers of the Hong Kong Police Force and Prisons Department and Chinose members of the Hong Kong Police Force forming the Shantung Police Contingent;

it is obvious that there are many placos which, having regard to their relation with Hong Kong, should be excluded from the category of places in which recruitment would involve expatriation pay. As, however, it would be very difficult to suggest a procise geographical definition which would not be morely arbitrary we feel that it must be left to the discretion of Government to decide what places within China and South East Asia should be included, or excluded, as places

in which recruitment would entitle the appointce to expatriation pay.

Definition.

12.

Coming now to the question of definition, We suggest that this should be done in the form of

a series of rulos or regulations on the following lines:-

(i)

"Overseas country" means a country other than Hong Kong, China, Macao, Japan, India, Burma, Ceylon, the Philippinos, the Netherlands East Indies, Siam, Malaya, French Indo-China, Borneo or Sarawak, or any adjacent territorios in South East Asia, from which a person is engaged for service with the Hong Kong Government, provided that for special reasons and in respect of any special case the Governor-in-Council may direct that India and such part or parts of China as the Governor- in-Council shall think fit shall be deemed to be within the definition of an overscas country.

(ii) "Expatriate Officer" means a person who,

owing to the lack in the Colony of a candidate possessing the requisite qualifications, has been appointed from an oversons country to the servicc of the

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