My Lord,
I (and, I believe, you) have written to Sir M. Nathan about the news that has reached the Colony regarding the rate of exchange for leave pay and pension being calculated on the sterling basis. I am confident that all ranks, including those for whom I am responsible, will be treated in the same way.
I mentioned incidentally that he should pay the dollar at the rate of 24.
No. 37.
Government House, Hongkong, 8th March, 1907.
I don't wish to reform his stand. I gather that an increase of pay would be in line with the present later exchange, it will indeed be an advantage to all classes in Hong Kong.
I agree to date from 1 Jan last. Draft for consideration C.P. at once.
Enclosure 1.
In accordance with paragraph No. 222 of the Rules and Regulations of His Majesty's Colonial Service, I have the honour to transmit copies of two Memorials on the subject of the salaries of Officers of this Government in relation to the exchange value of the Gold or Gold equivalent in which they are paid.
The first Memorial, addressed to me for transmission to Your Lordship, is signed by Sir F. T. Piggott, Chief Justice, by Sir Henry S. Berkeley, who has since resigned from the Colonial Service, and by Mr. S. T. Dunn, Superintendent of the Botanical and Forestry Department.
It purports also to present the views of Mr. H. R. Phelips, the Local Auditor, and of the late Harbour Master.
The second Memorial, also addressed to me for similar transmission in the event of my being satisfied of the general correctness of the figures it contains, is signed by the remaining heads of Departments.
RIGHT HONOURABLE
THE EARL OF ELGIN,
&c.,
K.G.,
&c.,