F
286
281
sterling salaries be paid at a fixed rate of exchange of 1/9 and that 20% be regarded as sterling salary and be paid at the average ! Hongkong demand rate from the 15th. of the preceding month to the 15th. of the month for which salary is to be paid. The higher per- •
-centage than the 66% estimated by Sir M. Nathan to cover ex- -penditure valued in silver is I submit not only justified but desirable in face of the increase in cost of living both in the Colony and in England since 1902. I am of opinion that if this concession is granted no general increase of sterling salaries will be necessary and that the continual dissatisfaction caused by variations in exchange will be set at rest.
The Government has made a very large economy
in personal emoluments, (this year which if exchange is maintained at 2/- will amount to
$150,000. Next year's Estimates are based on an exchange of 1/10. Sterling salaries aggregate about £122,500 per annum. The differ- -ence between 80% of salaries at 1/9 and 20% at an assumed rate of
Whole
2/- and conversion of the wat 1/10 would therefore be $28,637. This excess can reasonably be paid out of the savings
of this year.
12.
I trust that my recommendation will be adopted by you without variation and that your decision may be conveyed to me as soon as possible in order that I may without delay invite the Legislative Council to vote the necessary additional expendi-
-tire as from 1st. January, 1913.
13.
I have consulted both the Executive Council
and the Unofficial Members of the Legislative Council confidential- -ly on the subject of these proposals and they concur in them.
I have the honour to be,
Sir,
Your most obedient, humble servant,
Governor,&c..
J