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7. Again, what is to be done in the case of increases of salary to officers already in the Service? Must those increases be made in dollars, for if so it will be a long time before sterling takes the place of dollars, and, in the meantime, pension and leave pay rights will continue to increase. There is, for instance, the case of the Veterinary Surgeons in Penang and Singapore (see your despatch, No. 218, of 18 July, 1901*). These officers are not well paid, and I meant to recommend a sterling increase to their salaries. I am not sure that the double compensation will in every case meet the circumstances, but, until I hear further from you, I hesitate to recommend an increased dollar rate, which will carry with the increase not only double compensation, but increased leave pay and pension rates.
8. I am obliged to trouble you with these questions, because there are already a good many instances, especially in the Federated Malay States, where they affect cases already pending.
9. You no doubt realize that if cadets who now join the Service are to come on £225 with £300 on passing final examination, and £360 on first substantive appoint- ment, they will be in a better position than some cadets already in the Service. The grant of double compensation will greatly benefit an officer now drawing $7,800, it will give him an extra $1,950 a year, but the cadet who has had ten years' service and is still drawing $2,400, will be benefited to the extent of $600, and yet it is he who is most in need of help. I am inclined to think that when the sterling scheme has been prepared and received your approval, it would be well to give it six weeks' publication, and allow any officers now in the Service to come on to it, provided they applied within the time named, and were accepted by the Government.
10. I assume that officers on agreement or provisionally employed have no vested interests or rights beyond the exact terms of their temporary service. If, therefore, it is desired to continue their employment beyond any stated period they should, if Europeans and not employed in clerical work, be given only sterling
terms.
11. I shall now prepare the sterling scheme without roference to the claims of present holders of office. Each appointment will be dealt with on its merits, and I shall work on the basis laid down by you in paragraph 7 of your despatch under reply. I entirely concur with what you say in reference to the value of periodical increments, except, perhaps, in the cases of the highest appointments in each Depart- ment of the Service.
12.
With reference to your paragraph 8, my present view is that all non- clerical posts on the pensionable establishment which are now paid $1,200 and upwards should come on the sterling scheme, as well as those engaged in England on even lower salaries. Clerical posts are, as a rule, held by men whose domicile is in the East, who take their leave and draw their pension here. If, however, I find that the advantages in favour of the much simpler plan (i.e., a limit of $1,200 for any appointment) are so great as to make it advisable to adhere rather to a rate than to a class, I will so advise you, if the unofficial members of Council are not strongly opposed to that plan.
13. I have already dealt with your paragraph 9, and I note the decision in paragraph 10. The non-pensionable addition there referred to might be called "local pay," as it will only be drawn while at work, will not carry pension or, I imagine, leave pay (but this you do not say), and will neither be a personal allowance nor exchange compensation.
14. There is no objection to limiting pensions to £1,000, if you think it advisable to alter the pension regulations with that object. I may, however, point out that no officer can earn a pension of more than two-thirds of his salary, so that only 35 years' resident service and a final salary of over £1,500 could give a pension exceeding £1,000 a year.
15. I have noted what you say in paragraph 13 in regard to subordinate appointments, and this question will have my careful consideration. I do not know that there is a strong case for anything like a general increase of salaries in the clerical service of the Federated Malay States; the contrary may be the case, but an enquiry is now being made into the matter, and, should circumstances require it. I shall take advantage of the permission conveyed in your despatch to make whatever alteration is necessary. I note that wherever an increase is now granted to
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the subordinate services, in the Colony and Malay States, both leave pay and pension will be drawn at current dollar rates, and not at any fictitious rate of sterling exchange.
I have, &c.,
34195
SIR,
No. 34.
STRAITS SETTLEMENTS.
F. A. SWETTENHAM.
GOVERNOR SIR F. A. SWETTENHAM to MR. CHAMBERLAIN. (Received September 30, 1901.)
(No. 370.)
[Answered by No. 37.]
Government House, Penang, August 28, 1901. WITH reference to my despatch No. 369, of this day's date, I have the honour to point out, that you have given directions that cadets in the Straits Settlements are in future to receive £225 on appointment, £300 on passing the final examination, and £360 when posted to a substantive appointment in Class 5.
2. I had suggested £204 on appointment, because it divides by twelve, and I sug- gested the grant of £300 on passing the final examinations because the cadet then loses his free quarters. It is now necessary to decide what shall be the salary of the cadet in the Federated Malay States, where he will continue to enjoy free quarters after passing his examinations. I propose that the rate be £225 on joining, and it would not be unfair to make the rate on passing the final examination £276, but, it you think it better, this might be £500 as in the Colony. The salary of the lowest class in the Federated Malay States should, however, be £324 rising by two triennial increments of £30 each to £384. This with free quarters would be equivalent to £360, rising to £420 in the Colony, without quarters.
3. All sterling salaries should, if possible, be fixed at sums which will divide by twelve. I am sure you will realize the inconvenience of dividing £225 by twelve and then converting the result, £18 158., into dollars at say, 1s. 114d.
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No. 35.
I have, &c.,
F. A. SWETTENHAM.
STRAITS SETTLEMENTS.
GOVERNOR SIR F. A. SWETTENHAM to MR. CHAMBERLAIN. (Received October 14, 1901.) [Answered by No. 37.]
(No. 407.)
SIR,
Government House, Singapore, September 19, 1901. WITH reference to paragraph 3 of my despatch No. 370 of the 28th ultimo, I have the honour to state that, on further consideration, I think it is needless to arrange for a scheme of sterling salaries each of which will be exactly divisible by twelve, and I therefore desire to cancel what I said on this subject.
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No. 36.
I have, &c.,
F. A. SWETTENHAM.
STRAITS SETTLEMENTS.
GOVERNOR SIR F. A. SWETTENHAM to MR. CHAMBERLAIN
(No. 428)
(Received October 24, 1901.) [Answered by No. 37.]
SIR
Government House, Singapore, September 28, 1901. IN continuation of my despatch No. 369 of 28th August last,* concerning the increase to the salaries of Government officers, I have the honour to enquire whether it
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↑ No. 34.
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