Copy.
Enclosure!
1413
RECO Rece
71
Memorandum by the Acting Colonial Treasurer,
Hon. Col. Sec.
1. The premium on exchange with Japan is at present about 6 per cent.
2. At the present rate of exchange, officers drawing compensation receive over 25 per cent on their salaries.
3. It is therefore evident that in the case of such officers no rate of exchange for leave pay is required, but in the case of officers not receiving exchange compensation perhaps it would be well to fix the leave pay drawn in Japan at 10 per cent premium for the present, as it has happened that the rate between Hong Kong and that country has touched that premium since the adoption of the gold standard.
4. As regards pension in Japan as no officer has, in the terms of paragraph 1 of the despatch, a claim to a special rate I think that the fair way would be to fix such rate from time to time in accordance with fluctuations of exchange.
5. As stated the present rate is 6 per cent premium and for reasons stated in the case of leave I suggest that pensions drawn in Japan should in the meantime be augmented by 10 per cent.
6. As regards India exchange with that country is at present at the rate of about Rs 146 to 100.
If the old rate of Rs 227 be abolished and the rate suggested viz. Rs 200 to 100 be adopted the increase