244
6174
SIR,
30
No. 5.
THE SECRETARY OF STATE to THE GOVERNOR.
(Confidential.)
[Answered by Nos, 6 and 7.]
Downing Street, 20th March, 1920.
I HAVE the honour to acknowledge the receipt of your Confidential despatch of the 11th of December, 1919, submitting your recommendations with regard to the revision of the emoluments of the members of the public service of Hong Kong. 2. I have given careful consideration to your proposal that salaries should be fixed in dollars, but that for purposes of leave pay and for the calculation of pension an officer's salary should be taken as the equivalent of his salary at two shillings to the dollar. As you point out, this amounts in the main to the same thing as fixing the salaries in sterling and paying them at the rate of two shillings to the dollar as suggested by the Salaries Commission, but I cannot agree that its effects are likely to be more satisfactory. Indeed, I have come to the conclusion that it is most inadvisable to commit the Government of Hong Kong to the pay- ment of salaries expressed in dollars, because in that event it is impossible entirely to avoid the argument that a man who is definitely entitled to a salary of so many dollars is entitled to have them paid to him in Hong Kong when he is on leave of absence, and the claim to receive pensions locally in dollars is still stronger. In this connexion I would refer to various difficulties which have recently arisen, and are arising, in connexion with the rate of exchange for the payment, in this country, to officers and widows and orphans of pensions calculated on salaries. On the whole, therefore, I am strongly of opinion that all salaries now dollar" expressed in sterling should continue to be expressed in sterling, and that officers should be informed on appointment that the salaries are paid to officers actually serving in Hong Kong at a rate of conversion fixed by the Government, which rate is now two shillings to the dollar, but is liable to alteration. For officers paying visits to China and Japan the Government rate of conversion might be applied, but it should be distinctly understood that this is done as an act of grace, and only on the approval in each case of the Colonial Government.
3. I will now deal with the question of leave of absence. I may say at the outset that I entirely agree with your view that the grant of full pay leave as of right in every fifth year (or, indeed, at any other fixed time) would be wholly imprac ticable. In the main, I consider the present system fairly satisfactory, and I would observe that the Malayan Salaries Commission reported that the Hong Kong system seemed to many officers preferable to the scheme which at present pre- vails in the Peninsula. If, however, the opposite view is taken in Hong Kong I should have no objection to the adoption by the Colony of the system in force in Malaya (the Hong Kong maximum of full pay leave being kept at ten months instead of eight), but otherwise I regret that I could not agree to a more favourable system for Hong Kong than that prevailing in Malaya, which is explained in the enclosed print. I agree in either case to your proposal as to the grant of casual leave.
4. Passages. I feel some difficulty in dealing with your suggestions on this subject in view of your statement that these suggestions are made without know- ledge of the rules which have been adopted in Ceylon and the Malay Peninsula, and of the opinion which you express that if officers serving in those countries have been granted more liberal terms in this respect than those which you have proposed, Hong Kong officers should receive the same treatment. I enclose & copy of a circular of the Straits Settlements Government showing the present temporary arrangements as regards the payment of passages of officers proceeding on leave and returning from leave. As a result of the report of the Malayan Salaries Commis sion it has been decided that this grant should be continued for a period of five years. I should be glad if you would give further consideration to the question of passages in the light of these arrangements, and furnish me with your recom- mendations. It will be necessary to impose, in the case of Hong Kong, a similar limitation of the period of the concession. The passage scheme which has been dopted in Ceylon is shown in the memorandum enclosed, but I have approved of
• No. 4.
↑ Eastern No. 122 (6471/1912).
31
this scheme only as a temporary measure pending the report of a commission which the Governor proposed to appoint hereafter as to salaries in Ceylon, and I have made it clearly understood that I hold my hands free as to the continuance of the scheme as I have also done in the case of the Malayan scheme after the first five years.
5. House Allowances.—I approve your proposal that where quarters are pro- vided by the Government a deduction of six per cent. should be made from an officer's salary, except where free quarters are definitely assigned. I also approve your proposal that in cases in which quarters are not as yet provided the Govern- ment should pay a rent allowance equivalent to one-half of the rent actually paid, provided that the head of the department, or in case of heads of departments the Governor, is satisfied that this is reasonable; subject, however, to the further limita- tion that the amount so paid by the Government should not exceed eight per cent. of the officer's salary.
6. As regards acting appointments, I approve the recommendation of the Commission that an officer acting for a superior officer when on leave should receive the salary due to an acting officer under the existing regulations from the date of assuming the duties of the acting appointment.
7. I will now deal with the specific proposals which you make as regards salaries. I am much impressed by your argument that the system of classification at present in force in the Cadet Service is unsuitable, and that it must result in great inequalities in promotion and in periods of stagnation, alternating probably with periods of excessive rapidity of promotion. I agree that it should be possible for an officer who enters the service as a cadet to rise continuously from the salary of a cadet up to a certain point, but I do not entirely agree as regards the details of the scheme which you have put forward. In the first place I consider that the initial salary proposed for a cadet is probably too small. I will deal with this point further when the time comes to discuss the salary of police probationers. I do not feel that a system by which an officer can rise to the highest salary of Class I. by doing the minimum amount of work which will enable him to qualify for his annual increments can be satisfactory, and I consider, therefore, that your suggested scheme should be modified as follows :-
On passing his examination a cadet should receive £400 a year, rising by annual increments of £25 to £600. At this stage there should be a strict efficiency bar. A cadet's salary should then rise by £50 annually to £900, where a further efficiency bar should be placed, and then again by increments of £50 to £1,200. Above this rate I consider that promotion should only take place as Class I. appoint- mants fall vacant, and it will be convenient to make the scale for these, £1,250 to £1,500, by annual increments of £50. If this rate is adopted the corresponding alteration will, no doubt, be made in rates of salary for other heads of departments whose pay is intended to correspond with that of Class I. cadet appointments.
8. As regards the appointments classified as Special, I approve the rates of salary which you recommend here and elsewhere. It will, of course, be understood that as the system of fixing salaries in sterling has been retained the figures should be divided by ten and expressed in pounds sterling.
છે. I will deal next with the question of the Police Force. I observe that Police probationers are to receive the same salary as cadets, although they are some years younger. In my opinion some difference should be made between these rates, and I am inclined to doubt whether, in any case, £800 is a sufficient amount, even for so young an officer as a Police probationer. Possibly the Police proba- tioner's pay might be left at £300 and the ondet'a raised to £825, or the rates might be made £925 and £350, respectively. I shall be glad if you will consider this point. I agree to the proposed scale for passed probationers subject to the insertion of efficiency bars at suitable points in the scale, which I would suggest might be £550 and £800. I agree generally with your proposals as regards the lower ranks of the European Police Force, and the Indian and Chinese Police.
As regards the other matters referred to in your despatch I approve
10.
your proposals.
11. I desire to take this opportunity of requesting that you will convey to the members of the Salaries Commission an expression of my appreciation of their work in compiling their valuable and interesting report, which has been of great advantage to me in considering this question. I am also much obliged to yourself,
© 2
PUBLIC RECORD OFFICE
Reference :-
CO. 882/10
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC. COPYRIGHT PHOTOGRAPH-NOT TO
t