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Director of Public Works as it is to-day. Executive Engineers already correspond with the public direct and are encouraged to do so. To permit Executive Engineers to minute direct in C.S.O. files would, except in routine cases, lead to delay and con- fusion. The Secretariat should deal with the head of the department after he has settled his views with his subordinates, and not with subordinate officers. The proposals of the Commissioners would tend to be subversive of discipline within the Department.

Paragraph 42.-Instructions have been given that vacancies are not to be filled, except where absolutely necessary, and the Director of Public Works has been instructed to explore to the utmost the possibility of replacing the European Subordinate Staff by Chinese officers.

Paragraph 43.-The Crown Lands and Surveys, Architectural, Buildings Ordinance, and Electrical Offices are each specialist and closed sub-departments, so also to all intents and purposes are Waterworks and Port Development; this accounts for every sub- department except Drainage and Roads. Specialisation is thus an accomplished fact.

HARBOUR DEPARTMENT.

Paragraph 2.-The hearing of non-technical cases by the Harbour Master takes on an average ten to fifteen minutes a day. To transfer these cases to the Central Magistracy would not therefore do much to lighten the work of the Harbour Master. But even apart from this consideration Government is not prepared to put back the clock to the extent that would result from a reduction of three to two executive officers.

The reason for the increase in 1925 from two to three was that two officers were insufficient. It is only necessary to call to mind the unsatisfactory arrangement whereby an Assistant Superintendent of Police, the Magistrate's Clerk, or an officer borrowed from the Royal Navy, performed the duty of Assistant Harbour Master during the absence on leave of either the Harbour Master or Assistant Harbour Master, to realise what a retrograde step it would be to revert to an executive staff of two. Moreover subsequently to 1925 the Harbour Master has had assigned to him the duties of Director of Air Services, which already involve a considerable amount of work. This work will tend to increase year by year. It is understood that the Harbour Master was not questioned as to the work performed by his two Assistants.

Paragraph 3.-With the gradual increase in the size of the department and the greater amounts collected in fees, it was found that the work of accountant and office assistant was too much for one officer, and in 1939 the Treasurer minuted "In my opinion the Accounts branch of the Harbour Office is so large and important that an European Accountant is necessary". As a result the combined post was divided into two separate posts. There is a third European clerk in the Clearance Office. It is con- sidered desirable to have a European in this office to deal with European masters and agents entering and clearing their ships. The officer in question is a Probationer on the scale $1,200 to $1,560 per annum. There is also a European clerk in the Government Marine Surveyor's Office, the work of which has increased considerably. The steno- grapher is considered necessary for the handling of the confidential work of the head office, in addition to taking notes of meetings, etc. Government does not consider it possible to reduce the Senior Clerical and Accounting Staff in the Harbour Department below this establishment of five, without undue sacrifice of efficiency.

As.

Paragraph 4.-Government finds itself unable to agree with the Commissioners. a result of the appointment of the two additional Boarding Officers there has been a great improvement in the matter of overloading of ships. To jettison this work just when it is beginning to have a good effect would be unwise. Nevertheless, in order to meet the views of the Commission so far as possible, on the occurrence of a vacancy in any of the seven posts it will be left unfilled, until it can be seen whether or not an appreciable decline in efficiency results.

Paragraph 5.-The table attached to the Report shows that during the period 1921- 1929, revenue, in respect of junks and boats, reached its maximum in

in 1924 with $176,175 when there were five junk inspectors, and that in 1929 when there were seven inspectors it had dropped to $166,333. In the former year however there were 16,770 boats paying licence fees and 4,365 junks (exclusive of foreign trading junks which pay a reduced fee based on the number of trips to Hong Kong). In 1929 the