the contribution is worth where is the damage to the man? That ₤1 death becomes his sterling pension to his widow-calculated and payable in sterling. The Government is the only one who suffers, for it receives #9 and the person pays to the Fund on its $10. Whether
No.240. Hongkong. C O 38177 408
Government House, Hongkong, 28th September, 1907.
My Lord,
There is another matter. I see no reason why the Government should not contribute to the fund with a sterling contribution at the actual rate of exchange - Government already contributes 6% to the fund and pays to dollar widows in this country the difference between the current rate.
I don't think it need do nonsense, but it is proposed to base the proposal on an imaginary injustice to the officers. But the introduction of the sterling system, and now the recent modification of it, have unintentionally involved the Fund in such a way that the end must be its so bringing a definite basis for valuation.
Referring to Your Lordship's Despatch No.122 of 11th June, 1907, approving the payment of Sterling and Dollar Compensated Salaries at the rate of 2 shillings when the exchange value of the dollar exceeds that figure, subject to the consent of the Legislative Council which was conveyed in Mr. May's Despatch No.187 of 22nd July, I have the honour to inform Your Lordship that I have been advised that as the law now stands the effect of this decision on the payment of contributions to the Widows and Orphans' Pension Fund by Officers whose salaries are on a Sterling basis is to fix exchange for such payment at 2 shillings when the exchange value of the dollar exceeds that figure; whereas the pensions payable in respect of the contributions of these Officers are chargeable to the Fund at the rate of exchange current in the market at the time of payment.
2.
RIGHT HONOURABLE THE EARL OF ELGIN, K.G., &c. &c. &c.