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10. The exchange compensation allowance, as I have said, attaches to persons rather than to posts, and there are some few cases of officers in the higher ranks of the Service who have been debarred from it by the fact that they have not been domiciled in a gold standard country. On the whole I do not think that they should lose the increase which is now being given to the higher officers whose domicile is in a gold standard country, and if you concur I am prepared to approve of a non- pensionable addition of 25 per cent, to their salaries, being much the same addition as will be given to European officers in the form of compensation allowance.

11. have referred above to the great and increasing cost of pensions. I am inclined to think that in the case of all who enter the Government Service hereafter in the Colony or in the Federated Malay States, £1,000 per annum should be made the maximum limit of pension. It is the amount fixed by Imperial Act as a first-class Governor's pension, and, in my opinion, it is a sufliciently liberal retiring allowance, on the assumption that officers have been adequately paid while on active service.

12. In connexion with the new sterling rates for future officers, I will ask you to consider the present schedules of appointments and whether, as has been repre- sented to me, the proportion of higher to lower appointments should be increased. Such changes, if måde, must necessarily add to expense, but, within limits, I am pre- pared to consider such proposals of the kind as will, when combined with increments, give a hope of more steady improvement than at present to the position of the younger officers. There should, in short, be a revision of the grading of the services in the Colony, and the Federated Malay States, which revision can come into force at oner; and to the grades as revised-for future comers-should be attached new sterling salaries,

13. The higher appointments outside the Cadet Services in the Colony and the Federated Malay States will be dealt with in the same way. Existing officers will receive non-pensionable increases to their local salaries. Future officers will be paid in sterling,

In regard to the subordinate and clerical services, I am prepared to approve for the Colony the proposals contained in Appendices C C and D D) to the report of the Select Committee of the Legislative Council so far as you concur in them; and similar treatment should, as far as possible, be accorded to similar appointments in the Federated Malay States.

In the case of these subordinate appointments, which are paid in dollars, the increases which may now be granted will hold for the future, but, inasmuch as non-European members of the subordinate services occasionally visit Europe, care must be taken to ensure that after the proposed increases have been given, leave salary and pension shall be paid only at the current rate of exchange. This proviso might, I am inclined to think, be fairly applied even to existing members of the sub- ordinate services, provided that their pensionable dollar salaries are increased,

14. In all cases the increases should date from the first of January last.

J. CHAMBERLAIN.

I have, &c.,

آنا

that a sharp line shall be drawn between those officers who are already in the Service and future incomers.

This seemed to me to be the simplest plan to adopt, and I question whether it would be well, as suggested in your telegram of the 16th of July*--if I understand it aright-that officers now in the Service should on promotion, and as a condition of promotion, be placed upon a sterling basis. In each case there would probably be a discussion of circumstances and conditions which would be avoided by adhering to a hard and fast line.

3. I am telegraphing to you as to the sterling salaries to be fixed in the case of appointments which are now outstanding. There may be some difficulty with regard to the cadets, as the notifications which they have received will have led them to expect existing terms, but I shall hope that it will be surmounted.

4. I shall expect to receive from you, in due course, but not until you have had ample time to devote to the matter, full schedules of the services in the Colony and the Native States with the proposed new sterling salaries attached to the appointments or grades of appointments; and I need not say that I will gladly consider any further views which you may wish to advance. You are aware that, in my opinion, it is desirable to bring the services of the Colony and the Federated Malay States as nearly as possible together,

27008

SIR,

No. 26.

I have, &c.,

STRAITS SETTLEMENTS.

J. CHAMBERLAIN.

ACTING GOVERNOR SIR F. A. SWETTENHAM to MR. CHAMBERLAIN. (Received August 3, 1901.) [Answered by No. 29.]

(No. 310.)

Government House, Singapore, July 6, 1901. WITH reference to your despatch, No. 168, of 23rd May,† I have the honour to inform you that, after very full enquiry and consideration, I propose to place the initial salary of cadets at £204 (a sum which will divide by 12) and to give them £300 a year on passing their final examination, when they lose their privilege of free furnished quarters.

I have, &c.,

F. A. SWETTENHAM.

25409

25409

PUBLIC RECORD OFFICE

Reference :-

TLC.O. 882

6 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

SIR,

No. 25.

STRAITS SETTLEMENTS.

MR. CHAMBERLAIN to ACTING GOVERNOR SIR F. A. SWETTENHAM. (Confidential.)

11

"

Downing Street, August 2, 1901. REFERRING to the confidential correspondence* noted in the margin, on the Governor to Secretary of State, Contl., March 16.

May 17. 11 June 21. Secretary of State to Governor, Tel., July 12, Governor to Sveretary of State, Tel., July 13. July 16. Secretary of State to Governor, Tel., July 17. Governor to Secretary of State, Tol, July 31.

2.

I have followed the course sketched

subject of the proposed increases to the salaries of Government servants in the Straits Settlements and the Federated Malay States, I have addressed you to-day a numbered despatch,† dealing fully with the matter, which you can publish or not, as you think fit. out in my telegrams, and have proposed

• Nos, 14, 17, 22, 18, 19 and 20; and 24140 and 26458; not printed.

† No. 21.

No. 27.

STRAITS SETTLEMENTS.

MR. LUCAS to ACTING GOVERNOR SIR F. A. SWETTENHAM. (Sent August 3, 1901.)

TELEGRAM.

[Answered by No. 28.].

Salaries converted into sterling in your private letter of 7 July, I received here

3rd August, appear to me to be too high at 3s. 4d. Salaries of cadets in telegram of 2nd August§ were calculated at 3s. Delay sending general scheme till you have received despatches by mail of 2 August.

• No. 19.

↑ No. 16.

‡ Not printed.

§ No. 23.

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