/TEL
TELEPHONE
CITY 5856.
CHINA
کرو
41588
ASSOCIATION,
225
99, CANNON STREET,
LONDON, E. C. 4.
16th Aug. 1917
sir,
We have received a joint telegram from the Committee of our Hong
kong Branch and the Committee of the Chamber of Commerce of Hongkong
who together represent the chief civilian interests of the Colony, in
which they call attention to the very great hardship suffered by
naval and military officers stationed at Hongkong owing to the pre-
sent abnormally high rate of exchange.
For many years prior to the war the average rate of exchange was
1/10d to the dollar, equivalent to about eleven dollars to the
pound sterling, whereas exchange is now over 2/9d. at Hongkong and
about 3/- to the dollar at the Treaty Ports of China, equivalent to
less than 7 dollars to the pound, the result of which is that actual
local pay is reduced by over one third; the hardship is enhanced by
the increased cost of living, so that the actual value of pay in
comparison with pre-war times is now only about one half.
In order to meet the changed conditions the Hongkong Government
have granted civil servants the privilege of drawing four-fifths of
their pay at a fixed exchange of 1/9d. to the dollar, the balance
being payable at the current rate of the day. All mercantile firms
have long ago granted similar compensation. His Majesty's Government
have recently granted compensation to members of the Consular Service
and the Committee of the China Association and the Chamber of Commerc
representing the entire British communities of Hongkong and the
H.M.Under Secretary of State,
for the Colonies,
Downing Street, S.W.
A