640
the question of the taking over of the Fund by the Govern-
ment. The figures therein quoted as to rates of interest
prevailing in the Colony are correct.
7.
I understand that the majority
of the Directors and contributors are considering a
scheme of compulsory Insurance which would remove the
unpopularity of the present Fund for the reason that each
contributor would know that he, his heirs, or assigns
would eventually get some benefit in return for his con-
tributions; while all, or very nearly all, the Directors
and contributors feel that the Hongkong Fund has had such
a specially favourable start and is accumulating so rapidly
that they may confidently look forward to the possibility
of an increase in pensions, even on the Ceylon rates, if the
Fund is kept separate and fresh valuations are made from
time to time.
8.
In these circumstances I would
recommend that the proposal to transfer the Fund to the
Government be dropped, and that if necessary the actuary
be consulted as to whether the tables attached to the
Ordinance can with safety be adopted. If the report is
favourable I would ask Your Lordship to sanction their inclusion