Sessional_Paper_1902 — Page 914

HONGKONG.

PAPERS ON THE SUBJECT OF THE INTRODUCTION OF STERLING SALARIES INTO THE GOVERNMENT SERVICE OF HONGKONG.

Laid before the Legislative Council by Command of His Excellency the Governor.

Secretary of State to the Officer Administering the Government.

815

No. 45

1902

50-19.9.02.

HONGKONG.

No. 171.

DOWNING STREET,

13th June, 1902.

SIR,----I have had under my consideration Sir HENRY BLAKE's despatches of the 25th of October and the 11th of December last on the subject of the introduction of sterling salaries into the Government service of Hongkong.

2. In paragraph 3 of my despatch No. 426 of the 19th December last I in- formed Sir HENRY BLAKE of my desire that the same principles should as far as possible be adopted in regard to the preparation of a sterling scheme for future appointments to the Hongkong Government service as had been already laid down in the case of the Straits Settlements. That despatch was crossed by Sir HENRY BLAKE'S despatch of the 11th December, in which he submitted a scheme of sterling salaries.

November.

3. In despatches to Sir F. SWETTENHAM the numbers and dates of which are No. 341-1st noted in the margin, and of which you have no doubt already received copies from No. 73-10t!: him, I have explained my views as to how far and in what way officers who entered March. the service before last August should be affected by the introduction of the sterling scheme. The decision at which I have arrived may be summed up by saying that within six months from the publication of the sterling scheme officers will be allowed, without any discrimination on the part of Government, a free choice between coming under the scheme or continuing to receive, during the rest of their service in Hongkong, salaries fixed in dollars, as at present, with the addition of double exchange compensation. The choice will be final, except that an officer who elects to remain on a dollar salary, and who is hereafter transferred to the Straits Settlements or the Federated Malay States, may be allowed to elect to come under the sterling scheme when so transferred. This answers the second paragraph

of Sir H. BLAKE's despatch of the 11th of December last.

4. Information on some other general questions not disposed of by previous correspondence is contained in the despatch to the Straits Settlements of which a copy is enclosed. I also forward a copy of another despatch on the subject of the rate at which sterling salaries should be converted into dollars for purposes of local payments. The final decision on this point will, of course, await Sir F. SWETTENHAM'S reply; in the meantime the arrangement proposed in paragraph 10 of Sir H. BLAKE's despatch of 11th December should remain in force.

5. As regards those recommendations of the Sterling Salaries Committee which affect the calculation of pensions, I am addressing you in a separate despatch. The question of the contribution to the Widows and Orphans' Fund of officers whose salaries are fixed in sterling has been dealt with in my despatch No. 53 of the 24th February last.