7.

the continuation of the same scale would not

appreciably compensate officers for a fall in the

exchange value of the dollar to the ranges between s.d.

s.d.

s.d.

2/6 and 1/8. For values of the dollar between 2/0 and s.d.

2/4 it would in fact only give an increase of 0.8%

over present payments, and for the interval between s.d.

s.d. 1/8 and 2/0 an increase of 3.3%. It is thus evident

that some much steeper scale would be required, if

any substantial relief is to be afforded to officers

ky this means.

Generally speaking the high cost of living presses more hardly on married officers than

on single, a fact which has been recognised in Malaya by the grant of a bonus of 20% to married officers and 10% to single. In Hong Kong the additional complication of a fluctuating exchange must be taken into account. The grant of a percentage addition

to salary increasing as the dollar falls and of a

double amount for married officers is necessary, if

account is to be taken of both considerations.

table which follows in the next paragraph of this despatch shows how such a scale could be applied and at what approximate cost to Government. The

calculations are based on a total of £345,000 for

sterling salaries, for which a sum of $4,140,000 is provided in the 1928 Estimates.

The

The scheme which I now propose can

10.

be tabularized as follows:-

1.

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