75
PUBLIC RECORD OFFICE
Reference:→→→
C.O. 882
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
6 PUBLIC RECORD OFFICE, LONDON
is
your
intention that the double compensation of which you have approved should be pand to persons serving on agreement for a term of years.
2. Pending the receipt of your reply, I have given instructions that the grant of this extra compensation does not apply to persons serving on agreement because they are in a totally different position to the members of the regular service.
They are serving on terms specially agreed upon between themselves and the Government, and when their agreements expire they are in a position to cease their connection with Government (possibly to avail themselves of a free passage to England) or to take advantage of their independent position to make new and niore advantageous terms.
3. That covers all ordinary cases such as public works, railway and other employés, but it still leaves some doubtful cases, and this is one of the reasons why I was anxious, if possible, to get rid of the system of dollar salaries and all its attendant difliculties. For instance, there are the surgeons, surveyors, railway and Public Works officers appointed on agreement for a term of years, whose services will no doubt be permanently retained should they give satisfaction during the agreement, which amounts to a period of probation. Still they have only recently been appointed, they have not the same claim to consideration as those on the permanent establishment who have been here for years, and when the sterling scheme has been prepared and sanc- tioned they might, if thought advisable, be allowed to come on to it.
4. Again there are the nurses, who at present by the terms of their appointment are granted a certain rate of salary with compensation upon half of it, but are also provided with a ration allowance upon which the same compensation is granted. As I have said I have given instructions that as the nurses are engaged on special terms for three years only in the first instance, they are not concerned with the question of double compensation, but I should point out that even if an exception is made in their favour and they were granted compensation on their full salary, they would gain hardly any- thing at all if the compensation on their ration allowance were abolished. If, therefore, it were intended to really benefit them it would be necessary first to make an exception in their favour, (and that might form a difficult precedent) and secondly, to count the ration allowance as salary. You have laid down that no allowance other than personal is to carry exchange compensation, but it seems to me that a ration allowance is salary to all intents and purposes, and I do not quite understand why, in the case of these nurses it is made a separate emolument. On the other hand, there is the case of the European police who were engaged in England and are serving on agreement. I feel sure that you intended that these men especially should receive the advantage of double compensation. I regard their position as a special one, in that it seems to me the agreement merely covers a period of probation after which they will certainly be placed on the pensionable establishment if they have given satisfaction. Indeed I imagine the agreement is merely a means of enumerating the exact terms offered to them whilst it protects the Government against their leaving directly after their arrival in the Colony their case, no doubt, resembles that mentioned in paragraph 3 ante, but still there is a considerable difference if only by reason of the class of men dealt with. I have, therefore, decided that as the rank and file of a police force are usually engaged on agreement, the case of these European police must be considered a special one, and they will receive the double compensation which you have authorised.
5. Lastly, there are the cases of certain officers who up to this time have been drawing exchange compensation on allowances for entertainment, and so on. It is useless now to go into the question of whether such allowances ought ever to have carried compensation; the fact remains that it has been drawn, and I may instance one case, that of the Resident Councillor of Penang, who draws exchange compen- sation on his entertainment allowance. Having regard to your instructions I have given positive directions that double compensation will only be paid on salary and personal allowance, and to be consistent I have added that in making payments of double compensation from the 1st of January last, any sums drawn this year as compensation on other allowances must be deducted from the amount due for double compensation.
6. I shall be obliged if you will inform me how far I have rightly interpreted your wishes in these matters,
I have, &'c..
F. A. SWETTENHAM.
35985
SIR,
No. 37.
STRAITS SETTLEMENTS.
MR. CHAMBERLAIN to Governor SIR F. A. SWETTENHAM,
(No. 341)
2.
[Answered by Nos. 50 and 57.]
Downing Street, November 1, 1901.
28 August. No. 388,
I HAVE the honour to acknowledge the receipt from you of the telegram and despatches* whose numbers and dates are noted in the margin, on the subject of the grant of increased exchange compensation allowance to existing members of the Telegram, Government Services of the Straits Settlements and the Federated Malay States, and 24 August, the preparation of a scheme for placing the salaries of future members of these services No. 370, on a sterling basis.
As regards the position of officers who entered the service of Government & Septem before the 1st of August last, I desire to emphasize the view that the concession which ber. has been granted to them is to be regarded as a local allowance personal to the officers No. 407, concerned. Whereas they have hitherto drawn exchange compensation on half their 19 Septom- salaries, they will as from 1st January last draw such compensation on the whole of No. 428, their salaries, and of such allowances as are strictly personal. They will at the same 28 Septem. time cease to draw compensation on any other allowances (such as house or entertain- ber. ment allowances).
3. In this connexion I may add that the action reported in paragraph 5 of despatch No. 428 of the 28th September,† in regard to exchange compensation drawn since the 1st January last on other allowances, has my entire approval.
your
4. The position of existing officers is in no other way changed and will not be affected by the introduction of the sterling salary scheme. The posts which they hold remain as fully as before subject to the discretion of the Government, which will retain as before the power of increasing or reducing salaries, of granting personal allowances and of abolishing the posts.
5. The statement made in paragraph 9 of my despatch No. 243 of the 2nd August last that I was not prepared to consent to any scheme which would add to the existing charges for leave salary and pension, was not intended to imply that the leave pay and pension privileges of existing officers should in any way be reduced. If the grant to officers of increased compensation allowance involved their acceptance of a reduced rate of exchange for leave pay and pension, it might fairly be argued that the sterling scheme which was originally proposed, and which has been withdrawn in deference to the objections of the local service, had been re-imposed under another name.
6. On the other hand, although it had originally seemed to me the best course to draw the line as sharply as possible, for the sake of simplicity, between officers in the service on 1st August last, and those appointed after that date, I am of opinion that there is much force in the arguments put forward in paragraph 9 of your despatch No. 369 of the 23th August;§ and I approve your suggestion to fix a period after the pub- lication of the sterling scheme, within which existing officers would be allowed to come under the scheme; but in that case I consider that the option allowed to them should be absolute and final, and that the Government should not exercise any discrimination in this matter, as appears to be suggested by the last words of the paragraph which I have quoted from your despatch.
7. The salary of a newly created post, such as that of Commissioner of the Court of Requests, referred to in your despatch No. 309 of the 28th August last,§ should be fived in dollars, if an officer already in the Government Service is appointed. The officer will then draw exchange compensation on his whole salary and retain his present rates for leave and pension, subject, of course, to the rules laid down in the Depart- mental Circular No. 7 of the 11th June, 1887; but this fact should be left altogether out of consideration in fixing the dollar salary of the post. The officer would, after the publication of the sterling scheme, be given the option, as above provided, of accepting a sterling salary.
8. If on the other hand some person who was not in the Government service on the 1st of August last is appointed to a newly created post, the salary will as a matter of course be fixed in sterling,
* Nos, 34, 35 and 36, and two (29812 and 34213) : not printed, † No. 36. ‡ No. 24. § No. 33.
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