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scale of increases proposed by him for officers of this class, subject to the reduction of the rate of exchange for leave salaries and pensions, specified in paragraph 7 of the present despatch, but the 1st and 2nd Class Inspectors may be given $1,368 and $1,092, respectively, these being slightly higher rates than Sir W. DES Vœux proposed, in order that they may not suffer any reduction in the rates of pension which they have a right to expect under the existing rules.

(3.) The salaries of the Assistant Schoolmasters, of the Surveyor General, and of certain subordinate Members of the Public Works Department, have already been dealt with in my despatch on the Estimates for this year, and I hope to address you shortly on the other Members of that Department, in time to admit of the revised salaries being entered on next year's Estimates.

(4.) As you were informed in my despatch No. 104 of the 12th instant,

the salaries of the newly organized Audit Office will be fixed by the Controller and Auditor General.

(5.) The salary of the Attorney General has only recently been fixed at $7,800, without private practice, and there seems no necessity to make any change in that rate at present.

(6.) I regret that, as at present advised, I am not prepared to sanction the proposed increase to the salaries of the Chief Justice and the Puisne Judge. In fixing the salaries of judicial and other pro- fessional posts, which are not regularly filled by promotion from the ranks of the Civil Service of the Colony, regard must be had to the salaries of similar appointments in other Colonies, and I have recently declined to sanction any change in the pay of the Judges in the Straits Settlements. I feel unable to agree to a proposal that the salaries of the Judges at Hongkong should be higher than those at the Straits Settlements. The salary of the Chief Justice must therefore remain at $12,000, but I do not object to the salary of the Puisne Judge receiving a small increase from $8,160 to $8,400, the latter amount being the rate of pay of the Puisne Judges at the Straits Settlements.

(7.) Similarly the Harbour Master and Assistant Harbour Master cannot be allowed higher rates than the similar officers at Singapore, viz. : $4,800 and $2,400, respectively.

(8.) As to the Medical Department I am not satisfied that any change in the existing scale of salaries which have more than once been revised, is required, when account is taken of the house allowances and private practice allowed to certain members of the Depart- ment, which are not specified in the papers accompanying the Despatch under acknowledgment.

(9.) In regard to the Colonial Chaplain, as it has been decided that the office will not be continued on the retirement of the present holder, I am disposed to think that no increase can, consistently with the principle involved in that decision, be given to his salary from Public Funds. If circumstances require that he should be more highly remunerated, any addition to his pay ought in prin- ciple to be made up by voluntary contributions from those attending his ministrations, by whom, I may observe, the whole emoluments of his successor will have to be provided. In this case, however, I shall be prepared to reconsider the point if you find on consulting the members of the Legislative Council that they desire a different course to be pursued, and that their opinion is shared by the public generally.