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His Honour
Government House,
Hongkong, 27th March, 1907.
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Referring to Your Honour's letter of the 25th instant on the subject of General Order 35(1) which regulates the calculation of the monthly rate of exchange for payment of sterling salaries, I have the honour to state that this order embodies a decision of the Secretary of State which was communicated to this Government in a Despatch of the 3rd October, 1902, and that it cannot therefore be amended without reference to the Colonial Office.
2.
In view of the fact that the present system involves a gain to Civil Servants drawing sterling or exchange compensation salaries when the value of the dollar is rising which compensates for the loss which accrues to them when the dollar is falling, I am unable to see that such hardship is caused to them by the operation of the order as would justify my making representations to the Secretary of State in the matter.
3.
I enclose a table which shows that had Your Honour's suggestion of payment at the rate of the day been in force during 1908 Civil Servants drawing sterling or exchange compensation salaries would have lost thereby.
The Chief Justice.
I have etc.,
(Sgd.) M. Nathan,
Governor.
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