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with doing the minimum of work which will enable them to qualify for their annual increments. I cannot, however, at the moment recall any case in which an officer's promotion from one class to another has been expedited owing to his unusual zeal or ability. Very likely there have been cases in the past, but certainly they have not been so numerous as always to be present to the mind of the am- bitious

young officer as examples to be followed. importance of the work done will really be made as a matter of practice under the Payment according to the proposed system, since the posts of most importance will obviously be held by the inen whose age and experience make them most suitable for positions of authority, while in the case of minor posts it is hard to say definitely that one is of materially greater importance than another. The theory that a man will do less than his best because his future is assured is not one to which I am disposed to attach much importance in the case of a service manned by officers of the class who are appointed to cadetships. If exceptional cases of “slackness dealt with by withholding increments and if further measures are considered do occur they can be necessary it would be possible to establish a halting-point, say at $12,000 a year, beyond which no officer would be allowed to proceed without a special certificate of Competency.

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I am myself convinced that for every officer to have the advantage of knowing that, subject to diligence and good conduct, his future is definitely assured can only increase the attractions of the service to the best class of men and thus tend to generally increased efficiency.

From the point of view of members of the service the system may appear to have two weak points. It gives them no chance of getting promotion unusually early as a result of the death or transfer of their seniors and it does not provide windfalls in the shape of acting pay. I think, however, that the great majority of men would prefer the certainty afforded by regular increments to the chance of unexpectedly stepping into a dead colleague's shoes, especially when it is always necessary to reckon with the opposite possibility of senior men remaining in the service longer than is anticipated, and the rates of pay suggested seem to me to be sufficiently liberal to counterbalance the loss of additional pay for acting in posts of greater responsibility. I should be inclined, however, to make some special allowance for cases such as must occasionally arise where a junior officer is required to discharge the duties ordinarily performed by an officer at the head of the service, and I would make it a rule that an officer who is entrusted with the duties of one of the posts now in Class I. should, if his salary is less than $12,000 a year, be allowed to receive an additional increment while so acting, or two additional incre ments if his actual salary is less than $9,000. Similarly an additional temporary increment might be allowed to an officer who is acting as the head of a department (not being one of the departments of which the head is now in Class I.) if his substantive salary is less than $9,000.

9. The one serious objection that I see to the adoption of the scheme which I suggest is the probability that it will be more expensive than a system of division into classes, as there may be a large number of officers at one time at or near the maximum salary. But such a position would almost certainly be offset at a slightly later period by there being a large number of officers low down on the scale, and in any case it should be possible, by giving careful attention to the question of the number of cadets to be appointed in any one year, to reduce such fluctuations to a minimum and to ensure that the salaries of officers of the Cadet Service would be fairly evenly distributed along the whole scale.

10. Turning now to individual appointments, it will be observed that the Commission classify as "Special" the posts of Colonial Secretary, Chief Justice, Puisne Judge and "Attorney-General, and suggest that salaries of £2,200, £3,000, £1.800 and £2,000 respectively should be assigned to them. While fully recog- nizing the importance of these posts and the necessity of assigning adequate salaries to the holders, I am of opinion that the Commission's suggestions are unduly generous having regard to the emoluments of similar officers elsewhere. I consider that $20,000 would be an adequate salary for the Colonial Secretary. I have never fully grasped the reasons for which the salary of a Chief Justice is usually made considerably larger than that of a Colonial Secretary and I should have been disposed to advise that here also $20,000 was sufficient. If, however, it is desired to maintain the existing practice of paying the Chief Justice at a higher rate. I suggest a salary of $24,000. For the Attorney-General I suggest $18,000 ard for the Puisne Judge $16,000 or $16,500.

11. In considering other appointments it will be convenient to follow the same order in which they are set out in Mr. Severn's Confidential Despatch of 1st May.'

Medical Department.-I do not share Mr. Severn's view that Government Officers should be entitled to free medical attendance in their private houses and I do not advocate any change in the existing system in this respect. As regards salaries, I would place the Principal Civil Medical Officer on a scale of $10,000 rising by $500 annually to $12,000, though I should not be indisposed to agree to the maximum being raised to $13,000, if Your Lordship considers that $12,000 is insufficient. For the present I think that the Principal Civil Medical Officer should continue to look after the Victoria Hospital for Women as owing to the small size of the Colony the supervisory duties to which a Principal Civil Medical Officer is usually confined are scarcely sufficient to occupy his time; but I do not think that this arrangement can be permanent as medical institutions of the Colony will certainly increase in number (e.g. I am hoping to establish a General Hospital in Kowloon in the near future and also a convict establishment on the mainland to which it will be necessary to attach a hospital) and the Principal Civil Medical Officer will then have enough to do to supervise the department without under- taking professional work. I also agree with Mr. Severn's opinion that it is desirable that the health work of the Port should be attended to by an officer in the permanent service of the Government. This, however, is a matter to be dealt with separately.

For the other Medical Officers I agree that a salary of $6,000 rising by $250 annually to $10,000 would be satisfactory. The salary suggested for the Analyst appears to me to be somewhat low for a post of such importance and I would suggest that he should be paid at the rate of $8,000 rising by $250 annually to $7,500. I agree with Mr. Severn that free quarters should not be given. The Assistant Analysts might be paid $4,000 rising to $6,000 by $250 annually.

I may say here that I am in favour of making increments annual in all cases, where there is no special reason to the contrary. For the Veterinary Surgeon I agree in the suggestion of a salary of $6,000 rising by $250 annually to $8,000.

For the Apothecary and for the Nursing Staff I concur in the salaries proposed by the Commission, reading $3,000 for £300 and so on, except that I would make the increments both of the Matron and of the Sisters $100 annually. I do not support the suggestion for free board for the Nursing Staff and Mr. Severn informs me that he has now altered his opinion on that point.

12. Education Department. I agree generally with Mr. Severn's views but I am inclined to think that the salaries suggested for the Inspector of English Schools and the Headmaster of Queen's College are somewhat high. I would advise $7,500 rising by $250 annually to $9,000. For Class I. masters I would adopt a scale of $8,500 by $250 annually to $7,500 and for Class II. $4,000-$200--- $6,000. For the school mistresses I would accept the Commission's proposals, except that I would make the increments $100 annually throughout. I am not in favour of a special quarters allowance for unmarried mistresses; they should be dealt with under whatever rule may be adopted for the service generally.

In order to avoid repetition, I may say here that in expressing concurrence in the figures proposed by the Commission or by Mr. Severn I wish to be understood as meaning throughout that I propose to pay a salary of ten times the number of dollars in place of the pounds sterling which they suggest.

13. Public Works Department.-I do not in any way under estimate the im- portance of the post of Director of Public Works, but I consider that the salary which I have proposed for Class I. of the Cadet Service if the system of classifica- tio is retained, i.e. $12,000 by $500 annually to $15.000, is sufficient. two assistants I agree with Mr. Severn that the salaries should be $9,000-$250— As to the $11,000 and $8,000-$250-$10,000 respectively. I concur also in his proposals with regard to the other officers of this department (see paragraph 5 of his despatch Confidential of 1st May). I would take this opportunity of expressing my entire concurrence in what Mr. Severn says as to the desirability of reducing the number of European Officers in the service in cases where it is possible to obtain properly qualified Chinese graduates.

14 Railway.-I concur in Mr. Severn's view as to the overstaffing of this short line. For the present I would accept the salaries which he suggests but the whole matter should be reconsidered when the present manager retires.

* No. 2.

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PUBLIC RECORD OFFICE

Reference :-

TICO. 882/10

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH--NOT TO

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