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explained in paragraphs 5-8 of the Report. They have also drafted regulations embodying the recommendations already approved by you, and those now put for- ward by them, in regard to (a) Rent for Government Quarters and Rent Allowance, and (b) Passages (vide Annexures B and C to the Report).

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5. I have carefully considered the report of the Committee, and concur generally with the conclusions arrived at, and the recommendations made by them. In my opinion their work has served a very useful purpose in that, while again confirming the soundness of the general body of the recommendations already approved by your predecessor, they have been able to make some very useful minor revisions, effecting at the same time an appreciable reduction in the cost of working the scheme. I have also every reason to believe that the conversion rates settled by them on the basis of proposals submitted by Heads of Departments, for trans- ferring existing officers to the new salary scales are fair and reasonable. In the circumstances, I have no hesitation in submitting the proposals of the Committee your approval. Meanwhile, in view of the long delay which has already occurred in arriving at a final decision on the Salaries Scheme, and of the approval already accorded by your predecessor to the proposals submitted in my despatch No. 203 of the 12th April fast,‡ instructions have been issued for the immediate payment of salaries and allowances, with effect from 1st October, 1922, in accordance with the schedules and conversion tables contained in the Revision Committees Report, on the understanding that the payments so made shall be subject to adjustment in the event of any alteration being made by Your Grace or by the Government in the proposals of the Committee. I attach hereto a copy of the Circular* issued on the subject. I have also authorized the Treasurer to put the new passage scheme, which has already been approved by you, into operation, with effect from 1st October. 1922, in accordance with the regulations framed by the Committee (ride Annexure C to the Report).

6. Having already expressed my general approval of the recommendations made by the Committee, I feel it unnecessary to offer any detailed observations beyond calling attention to some of the more important points dealt with in the Report.

7. The proposal in paragraph 4 of the Report to reduce the initial salary of certain sterling scales from £540 to £500, coupled as it is with the provision that the officer shall be paid £600 per annum on completion of 30 years of age, is in my opinion quite reasonable and not at all likely to affect adversely the recruit- ment of efficient offieers for service in this Colony.

8. The recommendation in paragraph 9, as regards appeal from the decision of a Head of a Department that an officer is not fit to pass an Efficiency Bar, is in accordance with the view expressed in paragraph 1 of your predecessor's despatch No. 395 of 13th July, 1922,† and, after consideration of the points urged by the Committee, I withdraw the recommendation in paragraph 1 of the Memorandum which accompanied my despatch No. 203 of the 12th April, 1922,‡ and concur in the Committee's view that the original recommendation of the Salaries Commission. viz., that there should be no appeal to Government unless an officer is adjudged unfit for two successive years, should be adopted. In this connexion I would mention that, in the case of "combined" schemes (such as the General Clerical Service), embracing officers serving under different Heads of Departments, it is proposed that the working of Efficiency Bara ahould, like the class or grade promotions of these officers under the former scheme, be controlled by the Colonial Secretary.

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9. The proposals in paragraphs 10-18, and the draft regulations in Annexure B, regarding the Rent Allowance Scheme, have been carefully worked out, but the scheme, being a new one, will necessarily be experimental for some time to come and therefore subject to adjustment as regards minor details.

10. I concur with the view expressed by the Committee in their paragraph 21. that there should be no further extension or variation of the concession as regards Free Passages, and consequently I do not feel able to act on the suggestion in the last sentence of paragraph 2 of your predecessor's despatch No. 995 of 18th July,

1922.

11. With regard to the Committee's observations in paragraph 28 regarding the objections raised by certain Heads of Departments to the proposed classification of their Accountants. on the ground that it affects adversely the status and salary hitherto enjoyed by these officers in relation to other officers of the Department,

* Not reprinted. + No. 19.

No. 18.

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I have given careful consideration to the matter and have come to the conclusion that it is desirable that Accountants and Audit Officers should be graded separately from other officers; that the classification and scales of salary proposed by the Salaries Commission are sound and adequate, and that these officers cannot reasonably claim to be paid the increased salaries which it has been decided, for special reasons, to give to technical officers of their Departments whose qualifications and duties are entirely dissimiliar.

12. The action suggested in paragraph 36, for the revision of the various allowances now voted under Personal Emoluments, is being taken.

13. In connexion with the proposal in paragraph 39 that the increase in the number of posts in Class I, Grade 1, of the Civil Service be four instead of six as previously proposed, I would refer to paragraph 5 of your predecessor's despatch. No. 395 of 13th July, 1922,§ and trust that this limitation of the original proposal will commend itself to you. Appointments to this grade should continue to be personal, and recommendations for filling the vacancies will, as in the case of the present four members, be submitted by the Governor for the approval of the Secretary of State. In making such recommendations I shall bear in mind the desirability of including officers holding Judicial posts among the members of Grade I.

14. The proposal in paragraph 47 regarding the salary of the Colonial Auditor will receive my careful consideration.

15. The proposals in paragraphs 48-55 regarding Chief Headmen and Presi- dents of Village Tribunals appear to have been very carefully thought out and will I trust, materially conduce to greater efficiency and contentment on the part of these officers, who play a very important part in the administration of this Colony.

16. The proposals in paragraph 63 regarding Grade Surveyors are those alluded to in paragraph 7 of Mr. Clementi's despatch No. 713 of the 21st December last, in which I recommended that these officers be granted the additional 5/60ths pension in terms of section 26 (1) of the Ceylon Pension Minute, which recommenda- tion waas approved by Your Grace's despatch No. 65 of the 27th January, 1923.* The revised scales of salary and conditions of promotion now proposed have been worked out with care so as to provide adequate reward for keen and energetic officers who will qualify themselves for promotion to the higher grades, and, at the same time. to make reasonable provision for those officers who, though less brilliant. are entitled to consideration by reason of their steady continuance in the efficient performance of such duties as are allotted to them.

17.

I am addressing you separately with regard to the case of the Chief Justice, dealt with in paragraph 94.

18. Owing to certain representations received, I have given special considera- tion to the proposals in paragraphs 99-101, as regards Rupee Scales for certain officers of the Medical Department, and I am satisfied that the recommendations of the Committee are fair and reasonable, and adequately meet the circumstances of the several officers concerned.

19. I have already addressed you by a separate despatch (No. 173 of the 18th March, 1923), regarding the appointment of a Professor of Physiology and Registrar of the Medical College on the terms recommended in paragraph 113.

20 The proposals in paragraphs 114-128, for alterations of salaries in the Education Department, though somewhat numerous, appear to be justified, and I recommend their adoption.

21. The other proposals in the Report explain themselves, and do not call for any special remark from me.

22. The financial effect of the Committee's revision, set out in paragraphs 186-168, is very satisfactory, and it is all the more so because the object of the revision was not mere reduction of cost, but the removal of anomalies, supplying of omissions and adjustment of scales, whether in an upward or downward direction. as might be shown to be necessary, and the settlement of conversion rates on a reasonable basis, fair alike to the officer concerned and to the public purse which provides the money.

23. An expression of the Government's appreciation of the valuable work done by them has been conveyed to the members of the Committee.

I have, &c..

W. H. MANNING

Governor.

* 2484: not printed.

* No. 26. ↑ 17555: not printed.

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