279
in case the dollar at Hong Kong is ever placed
on a gold basis (we shall no doubt have to wait
for China to move first, but under American
pressure and probably by American guidance it
is bound to come some day ) and indeed our
hands must be free from the time when steps begin
to be taken with that end in view.
I have felt some uneasiness that when the
2/ arrangement was agreed to in 1907 no
reser-
vation was made as to revision in the future, and
especially in the event of a gold standard being
set up
a gold standard would almost certainly
have to be based on a dollar of more than 2/-;
as in the Malay Peninsula ). But fortunately
under the present proposals the 2/-arrangement
will disappear altogether, and we can make clear
reservations in acceding to Sir H.May's present
proposals.
I presume Sir H. May means what he says
with regard to converting 80 per cent of salaries
at 1/9
-
1.e. that conversion will take place at
that rate even if the dollar falls below that
figure it has fallen in the past to 1/6 ) I f
4/17
so, it means in reality that of our officers'
salaries will again be on a dollar basis and not
on a sterling basis at all, except when they are
anad.
out of the Colony, on leave or on pension. I do not
oppose this, since the represent what they spend
local
locally, and since dollar prices do not change much
A
in consequence of changes in exchange. But it is
well to realize what we are proposing to do, and
the point is so important that I would tel.
yor.
H. X detonating
nugonis plumbarit
Your conf: desp. 22 Nov. presume you intend three-
parheleoci
cunties
Saxifrage 80 per cent of salaries should be converted at 179 Saxifrage remprunter
enfeoffed
even if exchange falls below 1/9 Tel. reply.
Sent. 4.20pm
Tom'
23. Jan 13
Telegraft
AwĈ
22/1
M
proposed. but the answer will be in the negative.
atones
14..
23.1.13