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day which is the pay of an unskilled labourer. A compromise which would meet the views of the Colonel C.A. (Police) over the lower salaries and which merges into the Malayan scale at the rank of Sergeant is given in the 3rd Column of the attached table. This would cost £5,000 to £6,000 more than the application of the Malayan scale but if as appears all too probable the latter scale would not attract the right type of recruit the more generous scale must be adopted. It would be a tragedy to spoil the scheme for such a trivial sum and on the whole the adoption of the compromise scale is recommended. The establishment of Chinese Rank and File including the detective branch would be increased from 1174 to 1409.

6.

Indian Rank and File. The original proposal was to reduce the establishment of the Indian Section of the Police from 780 to 320 and to pay them on a scale based on the Chinese Police rates suitably scaled down to allow for the fact that it has always been customary to supply them with free rations.

In view however, of certain recent developments it has been found necessary to reconsider the whole question and it seems probable that the final decision will be to include a small Gurkha Section in the Police as a stiffening. Concrete recommendations for Indian Section salaries will therefore be submitted later.

17.

Rent Allowance. At present rent allowance is given very sparingly and only after long service. In order to foster a feeling of esprit de corps the Force must be kept together and not scattered all over the City. The long term policy should be to provide barracks for single men and suitable quarters for those who are married. That unfortunately is a good many years ahead and in the meantime if these men are to be properly housed a rent allowance is desirable which should be payable after two years' service. The rates proposed are $.15 for married men with 2 to 10 years' service, $.30 for a married man with more than 10 years' service, .50 a month for Inspectors and sub-Inspectors and 8.75 a month for Chief Inspectors.

8.

This will be an expensive item costing some $.350,000 compared with $.32,088 in 1941 but it is felt that it is one which must be faced if the standard of the Police Force is to be improved.

9.

Similar adjustments would be made in salary scales of the Fire Brigade and ultimately of the Prison Department. A table showing the manner in which this would affect the total expenditure of the Fire Brigade is attached, but it

•is not possible at the moment to set out the position in regard to the Prison Department as questions of establishment, and the future of the Indian Section are not yet settled. It is also impossible to provide a similar table in the case of the Police until a decision is reached regarding the future of the Indian Section which, if it is retained at all, will be much smaller than was hitherto the case. A table was however, prepared on the basis of the original proposals for the Indian Section and this is attached as it will give some indication of the increase in expenditure involved. It will be observed from this table that the cost of the higher salary scale is to a considerable extent set off by the reduction in the European establishment and

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