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PUBLIC RECORD OFFICE

Reference :-

C.O. 882

6 PUBLIC RECORD OFFICE, LONDON

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than those on sterling engagements, that was under consideration. It was certainly not intended to grant the option of coming under the sterling scheme to officers already on sterling agreements. You are aware, moreover, that in view of Sir F. Swettenham's objections, it was ultimately decided not to allow officers on dollar salaries the privileges of the sterling scheme.

4. The note under consideration has, however, been published in the Colony; and its wording seems to cover the case of Messrs. Rees and Masters. It would, perhaps, be hardly fair to cancel it now.

5. Before a final decision is taken, I should be glad to be informed whether any further applications to the same effect as those of Messrs. Rees and Masters have been or are likely to be received from officers serving on agreement, whether on dollar or sterling salaries, and what is likely to be the total increase of annual cost if all officers in a similar position had their salaries raised to the scale provided in the scheme.

51638

SIR,

No. 116.

I have, &c.,

(FOR THE SECRETARY OF STATE),

ONSLOW.

HONG KONG.

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

(No. 500.)

(Received December 15, 1902.)

[Answered by No. 127.]

Government House, Hong Kong, November 13, 1902.

In reply to your despatch, No. 265, of the 25th of last August,* I have the honour to inform you that Mr. E. H. Carpenter has passed the qualifying examination referred to in my despatch, No. 289, of the 1st August, 1901.†

2. During his year's probation Mr. Carpenter drew salary at the rate of $1,800 The salary per annum, which was equivalent to a sterling salary of about £175. for which he has been recommended is £216 per annum, or an increase of £40, which is a substantial addition to his salary in view of the fact that he has only about 18 months' service. I am not in favour of giving an increase of almost £100 a year to an Officer in such a junior position, seeing that the largest increase allowed in the Sterling Salary Scheme, except to Heads of Departments, is £60 a year, and that triennially. I, therefore, recommend that the salary of £216 be allowed to stand for the present.

3. With regard to Mr. Xavier's salary, which is correctly quoted in your de- spatch under reply, I have to point out that there is in this Colony no local allowance which is payable to Officers who do not receive exchange compensation; and that Mr. Xavier is not eligible to come under the Sterling Salary Scheme because he is not an Officer who, having a domicile in a country with a gold standard, is entitled to exchange compensation.

At present, therefore, he receives only his salary of $2,400 without any allow- ance except for travelling.

His last increase was in 1901, when his salary was raised from $1,800 to its present amount of $2,400, and in view of the fact that he has 15 years' service, and that the most junior Engineer, Mr. Carpenter, would at £216 be drawing $2,592 per annum at the present rate of exchange, I recommend that from the 1st January next Mr. Xavier should be permitted to draw the maximum salary of his appointment, namely, $3,000 per annum.

I have, &c.,

́HENRY A. BLAKE,

Governor, &c.

• 34162: not printed.

† 30811: not printed.

51650

201

No. 117.

HONG KONG.

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

(No. 512.)

(Received December 15, 1902.)

[Answered by No. 127.]

SIR,

Government House, Hong Kong, November 15, 1902. I HAVE the honour to acknowledge the receipt of your despatch, No. 318, of my confi. the 30th of last September,* and to refer you, in reply, to paragraph 6 of dential despatch of the 11th of December, 1901,† in which I stated that the Sterling Salary Scheme, forwarded under cover of that despatch, was designed to include all offices which would in the ordinary course be held by Europeans appointed from home-in other words all officers entitled to draw exchange compensation.

2. In paragraph 7 of the same despatch, I enumerated certain offices in Post Office to which sterling salaries were allotted because I anticipated that these posi- tions would in all probability be filled by European Officers appointed from home.

3. From this principle I deduce in the first instance the conclusion that an European officer on probation and, therefore, under exchange compensation rules not entitled to exchange compensation, should not draw a sterling salary, and secondly, that while the offices referred to in the Post Office are held by officers not The entitled to exchange compensation such officers are to be paid in dollars. officers who are at present filling the posts of Accountant and Superintendent of the Registration Branch in the Post Office and who are not entitled to exchange com- pensation, are being paid dollar salaries only, in accordance with this construction of the Sterling Salary Scheme.

4. Mr. Haggard is on probation and therefore not entitled to exchange com- pensation, and until he is employed on the permanent staff I am of opinion that he should continue to be paid in dollars.

5. In reply to paragraph 3 of your despatch under reference, I have the honour to inform you that the Director of Public Works is not yet prepared to recommend Mr. Haggard for permanent employment.

52568

No. 118.

I have, &c.,

HENRY A. BLAKE,

Governor, &c.

FEDERATED MALAY STATES.

HIGH COMMISSIONER SIR F. A. SWETTENHAM to MR. CHAMBERLAIN. (Received December 22, 1902.) (No. 451.)

SIR,

Government House, Singapore, November 21, 1902. I HAVE the honour to acknowledge the receipt of your despatch, No. 321, of the 22nd ultimo, transmitting copy of a letters received from Captain H. W. D. Adam, Wing Officer, Malay States Guides, on the subject of his position and prospects under the sterling scheme.

2. This scheme was taken up with the intention of putting an end to a system of anomalies, to secure something like finality, and to improve the position of officers then in the service. Before the necessary information on which to draw up the scheme had been collected, you made the grant of double exchange compensation, and, as that generous concession met the cases of officers already in the service, the scheme was prepared without reference to individuals but to meet the requirements of the service as a service, which I believe it does.

• 39967: not printed.

12160

† No. 46.

† 42577: not printed.

§ No. 102.

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