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HONG

KONG.

CORRESPONDENCE

(April, 1919-September, 1920).

RELATING TO THE

REVISION OF THE EMOLUMENTS OF THE MEMBERS OF THE PUBLIC SERVICE OF HONG KONG.

34023

No. 1.

THE ACTING GOVERNOR to THE SECRETARY OF STATE.

(Received 6th June, 1919.)

1

(Confidential.)

MY LORD,

[Answered by No. 3.]

Government House, Hong Kong, 15th April, 1919.

IN continuation of my Confidential despatch of the 31st March,* I have the honour to submit the following comments on the report of the Commission on the emohmments of the public service of the Colony.

2. I agree generally with the first five paragraphs of the report merely remarking that the arrangement made in 1913 whereby 80 per cent. of an officer's salary is drawn locally at 1s. 9d. to the dollar has proved an immense boon, far exceeding, so far as I am aware, any concession granted to officers in the Navy, Army, or Consular Service or the Civil Service in Malaya or Ceylon. It is true that the currencies of other Eastern Colonies and Dependencies are on a gold basis, but I have reason to believe that the cost of living generally has increased elsewhere in the East, though perhaps not to the same extent as in Hong Kong.

3. I agree with paragraph 6 of the report. I have always considered that the adoption of a 28. dollar for local payments was the most convenient system that the Government could adopt, and I would extend the privilege to salaries paid in all places where the silver tael or dollar is the unit of currency.

4. With regard to paragraph 7, I am in favour of an increase in the number of classes in the case of offices open to cadets from three to four, as recommended, but this classification should, in my opinion, be confined to such offices. There should be a separate grouping of all other senior offices. Subordinate and clerical appointments should also be treated separately. The sentence in this paragraph of the report relating to quarters and rent can be more conveniently treated later on.

5. I have already expressed my general agreement with the proposal in para- graph 5 of the report to abolish duty pay and most allowances, and in considering the scales of salary recommended in paragraph 8 of the report, I have not been unmindful of the fact that duty pay was introduced for the double purpose of reducing the salary on which an officer's pension would be calculated, and which would be drawn while on leave, while not diminishing the actual sum received by an officer when at work. There was a fear that if salaries were increased without such a compromise the Eastern Colonies and Dependencies might become liable for payments on account of pensions representing a larger proportion of their revenues than could be justified. This fear has not been proved to be well founded, and I have no reason to think that it ever will be. For this reason, and because the principle has worked somewhat unfairly as regards pensions and leave pay, I agree with the Commissioners that duty pay should be abolished.

6. I am not clear as to the meaning of paragraph 9 of the report, as house or rent allowances have no connexion with Government quarters. If the first eighteen words were omitted, and the paragraph began "We would represent, etc.," I have

* 80589: not printed.

PUBLIC

RECORD OFFICE

C.O.

Reference :--

882/10

PUBLIC RECORD OFFICE, LONDON

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