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that the increase in cost only amounts to $.60,764. Unfortunately this is only a theoretical figure as it will depend on the effectiveness of the steps taken to bring the European establishment down to something in the neighbourhood of the new approved figure. Against this, however, is the fact that rent allowance for the first 2 years will not reach the estimated figure for a normal year.
10. The reduction in the establishment of European Inspectors and Sergeants from 277 to 115 is a very considerable one and on the disposal of this surplus the whole scheme for the re-organisation of the Police largely depends. The position is complicated by the fact that it has been necessary to engage a number of Inspectors to carry on the work of the Europeans who are on leave recuperating from the effects of their internment. It is not possible to engage candidates with suitable police experience on a purely temporary basis and to enable the Force to function at all it has been necessary to engage a number of inspectors on permanent terms. If all personnel in the Inspector and Sergeant grades now on leave returns there will be 361 persons to fill 115 posts. A certain number of these, estimated at 40, will almost certainly be boarded out and it is suggested that a very strict medical examination of all Police personnel should be carried out before they are permitted to return. This may eliminate a further number but will leave a very large number to be disposed of. Of the 361 mentioned above, in the opinion of senior officers of the Hong Kong Police the probity of 145 is above question and 67 of these are reported to be thoroughly efficient. Sergeants, whose return is considered undesirable can be retired on abolition of office but this cannot be done in the case of Inspectors and sub-Inspectors. Placing a large number of persons on pension at a comparatively early age will be expensive and in the ordinary course would be very difficult to justify. But if a fresh start is to be made and a sound and efficient Police Force is to be built up, it must start off with satisfactory European personnel. If persons who are known to be unsatisfactory are allowed to return in any number, the money and effort which is being expended on the creation of a better Force will be entirely wasted. It is proposed to submit a list of European members of the Force whose return is desired and it is hoped that a serious effort will be made to transfer as many as possible of the remainder to other Dependencies. It may be felt that this would be unfair on the other dependencies but transfer in their present rank (and not on promotion) is suggested and if only a few are sent to any one dependency they may well give good service in new surroundings where the temptations which have been their undoing in Hong Kong do not exist. You will no doubt inform us of your views on this aspect when telegraphing in regard to the approval of the whole scheme.
11. At present the Police Force is greatly below strength and it is important that recruiting of Chinese rank and file on a large scale should be undertaken at the earliest possible moment. No recruitment is possible until the terms of service are improved so it is hoped that the above proposals will receive very early consideration and that approval will be notified by signal.
12.
At present owing to the weakness of the Police Force numbers of Naval Ratings and Commandos are employed on Patrol duty. The building up of the Police Force to
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Private notes are available after approval.