and the Policeman, who has to remit at market rate of exchange, could get $150 for $78, when the exchange was 1921⁄2 to $100

when 15597/95.

Therefore the Policeman was as the Soldier.

But when this despatch was written the Indian exchange rate had fallen at Haiphong to R-178 per $100 and since then (judging from the exchanges on London) I gather that it must have fallen to about $170. Hence the 3rd Class Constable at Hongking (in the absence of Family Remittance privilege) were no better off than the Soldier, be rather worse off, and there was some reason for giving him the Family remittance privilege, which the Governor has given;

There was but I doubt if there sufficient reason, considering chance of promotion from 3rd Class to 2nd Class Constables, i.e. from $150 a year to $168 + $186 a year which prospects (I believe) are not open to the Soldier.

In the case of the Sikh police it appear from Straits, the Leg. Council and the Govt of Straits objected vide 20958/95 to giving compensation, as it would open the door to many similar claims there being numerous natives of India in the service of the Colony.

(We had a memorial on the subject from Indians in the N. States which we refused to accede to); and it is most unfortunate that the Governing Mayor has granted this family remittance privilege (which is only another form of Exchange compensation), and in view of the despatch No. 5018 (Straits) which implied that he should confer with the Governor of the Straits as well as with the Govt of H.K. with a view to making the conditions of service nearly alike in the two Colonies & in the Civil & Military forces, I don't think he ought to have made this change without first getting approval of the Govt.

State seeing that it has the effect of making a still wider gap between the pay of the Straits & H.K. Police. (At the Straits the Sikh Constables only get from $108 to $132, compared with $186-$150-$168 here).

Such action will, I fear, make it impossible to adhere to any sort of exchange compensation policy at the Straits or refusing any compensation to natives of India.

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XCR(85)72

GR1178/1922/32(III)

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