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increase on salaries during leave would amount to Rs. 54 on Rs. 146 or very nearly 37%.

As stated before, at above rates exchange compensation amounts to only about 25% so that the suggestion of the Secretary of State as to reduction from Rs. 227 to Rs. 200 per $100 is fair and just for all classes in the service.

7. In the case of pensions drawn in India circumstances are different.

The class which, being appointed after 1st July 1897, draws pension in gold countries at the rate of 3/- the $1 receives a premium of about 50% on the nominal amounts whereas those drawing at 3/8 get about 84%.

It is therefore apparent that in the case of pension both classes of officers would draw less if the suggestion of the Secretary of State were adopted and India were to become a gold standard country.

8. A compromise might be effected by adopting as the pension rate Rs. 225 to $100 amounting to about 54% increase on nominal pay.

9. If however the Secretary of State wishes for the sake of uniformity that both classes should be on the same footing, neither having any claims, and that rates for leave pay and pension should be the same then the rate of Rs. 200/$100 should be adopted.

It should be borne in mind however that officers

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