7

L

These three elements are to a certain extent

mutually incompatible; and the superimposition of

each one of them on the others and on existing salary

levels produces results which are somewhat conflicting.

But, despite these difficulties, an econometric

analysis has produced a very clear cut pattern which,

with the approval of higher authority in the

Commonwealth Office and the concurrence of the 0.D.M.,

I am now authorised to put to you for your sympathetic

consideration.

5. Table A which I have annexed to this letter

sets out the present salaries in £ sterling of the

zen eleven remaining Governors. (of whom Swazilend is

very close--indeed-to-independence

6. Table B sets out the responsibility rating of

each of them based on the assumption that, in the

circumstances of today, Hong Kong rates 100,

St. Helena rates, 25 and the others find their

appropriate level in between. This table has been

prepared by synthesising two independently prepared

ratings:

(a)

(b)

a subjective assessment of responsibility

which was made by Sir A. Galsworthy, who is

perhaps uniquely able to make a fair comparison,

an assessment made by our Economists of the

Gross National Product of each individual colony

at market prices converted to £ sterling at

conventional exchange rates.

The synthesis was effected by taking not the crude

figures of G.N.P. but their logarithm, since while

G.N.P. increases by multiplication, "responsibility"

could more appropriately be taken to increase by

CONFIDENTIAL

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