D4. 32855 Fd (4200)
NOTHING TO BE WRITTEN IN THIS MARGIN
Effects of Devaluation
3. In the second sub-paragraph of Paragraph 2
(i) of your letter of 27 February you said
"We still prefer to retain the traditional
principle that territories are primarily
responsible for their Governor's salary etc."
The territory expresses these salaries etc.
in its estimates in local currency. The Governor was, of course, notified/them/in his Letter of Appointment (in sterling. So
long as the original parity between sterling and
the currency of the various territories remained
as it was, there was no problem. But five
Governors were affected by devaluation, namely
Bahamas, Fiji, Hong Kong, Swaziland and the
Western Pacific. The position was doubly
complicated in the case of the Governor of Fiji because his letter of Appointment expressed
his emoluments in terms of both sterling and
Fijian pounds and has manifestly now become a
nonsense. I think that the simplest way of
dealing with this problem is to amend the sums in the letters of Appointment to conform with the sums in local currency which appear in
the estimates of the territories concerned;
should
and I shall be grateful for your confirmation
that this is in order.
The
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