COPY

Enclosure No. 4.

111

UNION INSURANCE SOCIETY OF CANTON, LTD.

CONFIDENTIAL.

Hong Kong, 10th March, 1930.

Dear Mr. Hallifax,

(1) As promised I have considered the Report

of the Special Committee appointed by the General Committee

of the Hong Kong Chamber of Commerce to examine the Report

of the Salaries Commission and in order that I may convey

my views to you I have thought it desirable to comment

generally upon the conclusions reached in the Report of the

Salaries Commission. I am prompted to do this in view of

the fact that there is very little I can write about the

Report to the Chamber as it practically condemns the whole

recommendations of the Salaries Commission and therefore

I am confining my remarks more to an appreciation of the

conclusions of the Salaries Commission, with which, despite

the views expressed by the Committee, I am in full accord.

(2) The basis laid down in paragraph 12 for

the payment of Sterling salaries I maintain is a simple

and sensible one. When the sterling value of the Dollar

s.d.

s.d.

falls to 2/- or below 2/- the employees receive the exact

s.d.

If

equivalent in Dollars of their Sterling salaries.

however the sterling value rises above 2/- they receive

s.d.

their salaries at 2/- and this latter method maintains the

minimum amount of Dollars it is possible for them to

receive in any one month. It might be argued that if

employees are to receive the full Dollar equivalent when

s.d. the sterling value of the Dollar falls below 2/- they

should receive the Dollar equivalent also when the sterling

s.d. value rises above 2/-. I am prepared to admit that this

point is open to argument.

In considering this question

it is well to bear in mind that when the Dollar falls

there will eventually be an increase in the cost of

living in this Colony and it is in my opinion only

fair that employees should under normal conditions

receive

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