33
as a matter of fact is modified from time to time,
cannot be treated as if it were a promise of a
substantive salary. It is only necessary to
think what the sterling value of the Hong Kong
dollar was towards the end of the war, to see into
what absurdity that doctrine would lead us.
The
Hong Kong dollar sterling arrangements mu st
therefore be regarded as a matter liable to change
from time to time.
If this is so, then we have to ask
our selves does the proposed alteration
of the
agreement really inflict hardship on tho se
concerned, over and above a mere reduction of
temporary and incidental advantages they enjoy
for the moment. The answer is given by Sir William
Peel in his statement that the cost of living has
not increased with the fall of the dollar to the
extent anticipated.
I therefore agree with Mr. Ellis and
would approve the Governor's proposals.
G.G.
22.12.20
Bec of State.
I kept this, as I wanted t
deseiers with to Department.
the
As the prevent arragement only
Ame into fance
and
as no
bix months fo
warring was given
as to such rates of exchappe being vered from time to time,