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This gives an average annual salary of about $823, and shews a saving on the existing expenditure of $31,010.

It will be observed that the proposed average pay is $79 per annum in excess of that given in Mauritius, $88 in excess of that given at Singapore, and a great deal more than double that given in Ceylon. The pay of the several classes ranges from $30 rising to $40 in the lowest class, to five times those amounts, or $150 rising to $200 in the highest.

The rates compare very favourably with the salaries given by private firms in Hongkong. And it must be remembered that these firms do not grant pensions, whereas Government does.

From every point of view therefore I consider the scale which I suggest to be abundantly sufficient. Nor is either the quantity of the work demanded of our clerks, nor the quality of their work such as to justify extraordinary rates of pay.

As regards the amount of work they have to do, I am satisfied that it is in many cases not sufficient, and that the number of our clerks may presently be reduced. I am not yet in a position to submit definite proposals in this behalf; but as regards my own Office I may say that I could certainly dispense with the Chief Clerk (now on leave), and probably with another clerk in addition.

6/6/92.

Secretary of State to Governor.

HONGKONG.

No. 270.

SIR,

DOWNING STREET,

28 November, 1892.

With reference to my Predecessor's despatch No. 112 of 3rd May last, and to your despatch No. 189 of 28th May last, regarding the classification and revision of the salaries of Clerkships in the Hongkong service, I have the honour to inform you that I have had under my consideration the amended scheme of salaries, which, with the concurrence of your Executive Council, you have since submitted to me, and which may be summarised as follows :-

1st Class, including six Clerks, salary $1,800 rising to $2,400 a year ; 2nd Class, including seven Clerks, salary $1,440 rising to $1,680 a year; 3rd Class, including fifteen Clerks, salary $960 rising to $1,200 a year; 4th Class, including nine Clerks, salary $720 rising to $840 a year; 5th Class, including eighteen Clerks, salary $540 rising to $660 a year; 6th Class, including thirty Clerks, salary $360 rising to $480 a year.

2. I have no objection to the gradual introduction of this scheme, as vacancies occur, in lieu of the scheme approved in my Predecessor's despatch No. 112 of 3rd May last, if the Unofficial Members of the Legislative Council concur in your view that the proposed salaries are sufficient.

3. You will remember that the salaries of these officers were recently raised 20 per cent. above the rates of pay fixed in 1875, because it was represented in the Report enclosed in your Predecessor's despatch No. 389 of 23rd December, 1889, that the cost of living in Hongkong had grown very considerably in the case of officers domiciled in the East, as well as in the case of officers appointed from England. That Report stated in effect that the cost of living generally had within ten years increased 20 per cent. for Europeans, and 10 per cent. for non-Europeans, and it was accordingly recommended that European officers should be given what was practically as estimated in dollars a rise of 35 per cent. on their 1875 rates of pay, and non-European officers a rise of 20 per cent. over the rates prevailing in

1875.