CO882-6 — Page 314

། ། ། ། ཱ།

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

6PUBLIC RECORD OFFICE, LONDON

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

42193

50

No. 12.

STRAITS: FEDERATED MALAY STATES.

MR. CHAMBERLAIN to ACTING GOVERNOR SIR F. A. SWETTENHAM,

(No. 77.) SIR,

[Answered by No. 17.]

Downing Street, March 1, 1901. WITH reference to the correspondence* noted in the margin, I have the honour to inform you that I have given my careful con- sideration to your letters of the 23rd and 27th of December last† (copies of which are enclosed for convenience of reference), in which you in the Straits suggested the introduction Settlements and in the Federated Malay States, of salaries fixed in sterling.

Officer Administering the Government. 30, Aug. 27, 190

Secretary

1900.

of State, 353, Nov. 21, Officer Administering the Government, 403, Oct. 26, 1900.

Secretary of State, 366, Dec. 1,

1900.

Acting High Commissioner, Confiden- tial, Nov. 8, 1900.

Secretary of State,

18, 1900.

Telegram, Dec.

Secretary of State, Telegram, Jan, 31, 1901.

2. I am disposed to think that the Colony and the Federated Malay States are justified by their financial position in granting a general increase of salaries, which at present are on the whole on a lower scale than the salaries of corresponding officers in Ceylon. I concur, however, in your view that it would not be prudent to grant any further increase in existing salaries, unless the opportunity were taken largely to reduce the privileged rates of exchange for leave and pension purposes, so as to avoid throwing an undue burden upon the resources of the Governments in future years.

3. I am therefore prepared to accept your proposal that the difficulty should be met by fixing the salaries of, at any rate, the higher officers in sterling, and abolishing the special rates of exchange for leave and pension purposes, and also the privilege of exchange compensation.

4. I understand that you do not propose to fix the salaries of subordinate officers in sterling, and if you consider that all salaries could not be paid in sterling, I am prepared to agree that officers drawing, say, $1,200 per annum and under, should continue to have their salaries fixed in dollars. It would, however, be necessary to make an exception in favour of a few specified classes of officers, e.g., European police constables and nurses, who, being sent from this country should have their salaries fixed in sterling.

5. In introducing the new system, I am of opinion that all existing members of the services should be given, individually, the option of either accepting the new sterling rates of salary, which will in most cases be an increase on their present salaries, accompanied, however, by a possible prospective reduction in leave salary and pension, or of remaining on their present footing without any increase of salary, but retaining their present privileges of exchange compensation and special leave and pension rates of exchange.

6. As it is desirable that the change, when adopted, should be final, as far as possible, I shall be glad if you will, before submitting the proposed change to the Legislative Council of the Colony, and forwarding a detailed scheme to me, invite a representative expression of views from members of the Government services, in such way as appears to you most expedient.

7. I agree with you that all branches of the Colonial and Federated Malay States services should be included in the scheme, and not merely members of the cadet service. As regards the Railway Department of the Federated Malay States, I shall shortly address you in a separate despatch in connection with the actuary's report on the Railway Superannuation Fund.

8. I think that the sterling salaries should be converted into dollars, not at a rate varying from month to month, but at an annual rate fixed at the time when the Estimates are prepared, and based on the average of the preceding twelve months. This will greatly simplify accounts, and avoid the necessity of detailed supplementary estimates for establishments. It will also simplify contributions to the Widows' and

• No. 1, 2, 3, 4, 5, 6 and 11.

+ Nos. 8 and 9.

51-

Orphans' Pension Funds, since it is probable that the accounts of those funds must still be kept in dollars, and contributions thereto varying in amount from month to month would introduce great complications.

9. You will probably agree with me that the rule referred to in Sir Charles Mitchell's despatch, No. 229, of the 6th July, 1897,* under which all widows and orphans drawing pensions from the funds and residing in gold standard countries are allowed to draw their pensions at 3s. the dollar, should be abolished, at any rate in the case of the widows and orphans of all future officers; and I request you to con- sider whether the privilege should be withdrawn altogether in connection with the new scheme.

10. I concur in your view that the increments to be adopted should be generally, if not always, triennial; and in this connection I have to 'refer States despatch, No. 19, of the 18th January last, and to state that I approve of the you to my Native incremental scales of salary in the Public Works Department of the Federated Malay States, and in some of the Departments of the Federated Malay States and the Colony, being made triennial instead of quinquennial, as at present.

11. I approve the suggestion made by Mr. Venning near the end of his Minute of 16th September last, enclosed in Sir J. A. Swettenham's Federated Malay States despatch of the 8th November last‡ (which need no longer be regarded as confidential), viz., that an officer acting in a higher grade than his own should draw half his own pay and half the initial pay of the grade in which he is acting, when that half pay is available. I am aware that a different rule was laid down in Lord Kimberley's despatch to the Governor of Hong Kong, a copy of which was enclosed, for the information and guidance of the Governor of the Straits Settlements, in Lord Derby's despatch, No. 123, of the 15th May, 1883,§ but the rule now proposed is in force in most Colonies, and appears to me the most reasonable arrangement.

12. I approve your proposal that the present system in the Federated Malay States of giving free quarters as far as available, which do not count for pension, should be maintained; but in that case the scale of salaries of such officers in the Federated Malay States as have free quarters should be somewhat lower than the scale of corresponding officers in the Colony (who are not given free quarters), though not to the full estimated value of the quarters.

42193

(No. 74.)

No. 13.

HONG KONG.

I have, &c.,

J. CHAMBERLAIN.

MR. CHAMBERLAIN to GOVERNOR SIR H. A. BLAKE.

Downing Street, March 1, 1901.

SIR,

I HAVE the honour to transmit to you a copy of a despatch which I have addressed to the Officer Administering the Government of the Straits Settlements, from which you will perceive that I have provisionally agreed that the salaries of the higher officers in the Straits Settlements and the Federated Malay States shall in future be fixed in sterling.

If this change is made in the case of the Straits Settlements and the Federated Malay States, it should be made also in the case of Hong Kong on similar lines.

It would be premature to bring the matter formally before the Legislative Council at the present time, but I should be glad to have an expression of your views, together with the outlines of a definite scheme, after you have taken such official and unofficial advice as you may think most suitable.

I have, &c.,

J. CHAMBERLAIN.

• Not printed.

† 803: not printed.

No. 5.

7883/83: not printed.

| No. 12.

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