1
}
C
N°
226.
43346
RESS
REU I SEP 20
442
GOVERNMENT HOUSE.
HONGKONG. 12th July, 1920.
mo
Gr
37395
159890
2150/97 Ceylon
My Lord,
I have the honour to confirm my telegram of
the 25th June, 1920, on the subject of the rate of exchange
in connection with dollar salaries and pensions.
2.
I do not feel able to accept the view that
the rate of payment of pensions is a matter of contract, and such a view appears to be inconsistent with the fact that the rate of exchange has been varied from time to time as a result of increases of salary without the consent of the
officers concerned being asked (cf. paragraphs 6 and 7 of
Lord Knutsford's despatch No.110 of the 19th June, 1890).
I would observe also that in the final paragraph of Lord Knutsford's despatch No.72 of the 4th April, 1891, it was directed that a notification should be issued to the effect that all officers, other than those on the 48.2d. rate, "wil] only be paid their pensions in England at 38.8d. and their leave salaries at 48." In Mr. Chamberlain's despatch No.55
of the 5th March, 1897, the rate of exchange for the payment|
of leave salary or pension in the United Kingdom was reduced, to 3s. to the dollar, and it was directed that the proper rate of exchange should be inserted in all leave and pension papers. In a typical letter of appointment, dated in the year 1894, it is stated that "leave salary is paid in England at 4s. to the dollar and pension at 38.8d. to the dollar".
THE RIGHT HONOURABLE
VISCOUNT MILNER, G.C.B.,
&C..
&C.
&C..