498
unless this rate falls appreciably or compensation is given for its high level, the amount that will be expended on Sterling Salaries in the year will fall considerably short of the Estimate.
10.
Subsequently to the above quoted Despatch, I understand that Your Lordship, on the 8th January last, asked the Governor of the Straits Settlements what solution of the salaries question would be applicable to Hongkong as well as to the Straits Settlements and Federated Malay States. Sir John Anderson has been good enough to favour me with a copy of the Despatch he wrote in reply, No. O, dated the 31st January, 1907.
7001
The 11th paragraph of which suggests that salaries in Hongkong should be paid at the rate of the day, so long as it does not exceed two shillings and two pence, and that if the rate exceeds two shillings and two pence, the salary should have a percentage added to it equivalent to one-fortyeighth of the excess of the rate over two shillings. For simplicity, it is suggested that in place of the above, an additional cent should be given on every dollar for every half penny that the dollar rises above two shillings. With nine dollars to the Pound Sterling, or the dollar at rather