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HONGKONG.

No. 24 91.

DESPATCHES RESPECTING INCREASE OF SALARIES OF PUBLIC OFFICERS.

Laid before the Legislative Council, by Command of His Excellency the Officer Administering the Government, on the 19th June, 1891.

TELEGRAM.

Governor to Secretary of State.

25th April-Unofficial Members of Legislative Council inform me they have sent telegram which I declined to transmit; general indignation at Military Defence Contribution; this is outcome of it; have you sent despatch on increase of pay?

Secretary of State to Governor.

2nd May-Referring to your telegram of 25th April, Salary and Allowances in my Despatch due to arrive at destination on or about 6th May; but suspend action until further orders going by next mail.

Governor to Secretary of State.

6th May-Departing on 8th May Japan arriving at home about July; referring to your telegram of 2nd May, from my point of view Salary and Allowances voted by Legislative Council and sanctioned by Secretary of State should be paid this year; open for reconsideration next year's annual Estimates, officers warned against possibility; KESWICK adopting this view separated from remainder of Unofficial Members of Legislative Council. Hope that further instructions will not affect position taken up by me.

Secretary of State to Governor, Hongkong.

HONGKONG. No. 71.

SIR,

DOWNING STREET,

3rd April, 1891.

In reply to Mr. FLEMING'S Despatch No. 438 of 15th December last, I have the honour to inform you that I approve the increased salaries as voted in the 1891 Estimates, subject only to the following modifications in particular cases to which I will refer generally in the order in which they appear on the Estimates.

2. Passed Cadets.--I approve the recommendation in paragraph 8 of Mr. FLEMING'S despatch that Passed Cadets (as well as Cadets) should have a house allowance in the absence of any available free quarters, but I would suggest that instead of giving them an allowance of $600 (which appears excessive) it would be better to hire Quarters in which the Cadets and Passed Cadets should live together, as is, I understand, done at the Straits Settlements.

3. The Reference Clerk in the Colonial Secretary's Office and the First Clerk and Cashier in the Treasury.-I have felt some hesitation in sanctioning the proposal that an increase of 35 per cent. should be assigned to the pay of these two Clerkships, since whatever may be decided as to appointing their successors from this Country, the present holders were not so appointed. On the whole, however, I am prepared to approve the proposal that such an increase should be