3

9.

It will thus be seen that the Commission's unanimous Report supplics,

in accordance with its wide terms of reference, concrete recommendations covering

in detail all immediate problems in regard to the remuneration of the public service

in Hong Kong, and offering valuable guidance for the future recruitment, training,

conditions of service, and discipline of Government servants in the Colony.

Throughout, it is apparent that the Commission has made every effort to apply the

principles enumerated in the White Paper, Colonial 197.

10.

After careful consideration of this Report and with the advice of

Executive Council on all its aspects, I endorse its proposals generally and

recommend them for your early approval in principle, with the exception of those in

paragraphs 162, 164 and 165 relating to pensionability, to which I wish to give

further consideration.

There may be more points of detail on which I may find it

necessary to address you further after all heads of departments have been consulted,

but I consider the increases suggested generally reasonable, as representing the

minimum upon which the Government my hope to retain its servants against the

counter attraction of commercial houses. Moreover, as is shown in later paragraphs,

11.

It

the Government is in a position to bear the cost of the extra expenditure involved.

It has been impressed upon me that the new permanent rates of pay, added

to the temporary high cost of living allowances now recommended, are designed together

to provide reasonable minimum total emoluments for the various grades of the service

at present, and that any downward variation in either quantity in this equation would

produce less total pay for cach officer than the Commission considers essential.

follows that, until the cost of living falls, any general alteration downwards

in the recommended rates of permanent emoluments must be accompanied by a correspond-

ing upwards alteration in the rates of high cost of living allowance and vice versa.

The principles on which the Commission has recommended the employment of

expatriate officers and the payment of expatriation pay are fully set out in Chapter

3 of the Report. It has been explained to me that the Chinese members of the

Commission felt very strongly that the principle of expatriation pay must not be so

applied as to amount in substance to raising the salaries of expatriate officers

doing the same work as local officers and that accordingly, if the total emoluments

of an expatriate officer were greatly to exceed those of a local officer

performing the same work, either the former wore excessive or the latter inadequate,

12.

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