DECODE
RECEIVED 12 JAN 1931
COL. OFFICE
18
426
31,
ル
tel. No. 114
•
Telegram from the Governor of Hong Kong to the Secretary of
State for the Colonies.
Dated 12 January, 1931. Received 12.15 p.m.12 January, 1931,
VERY URGENT. Confidential No.8. Your telegram of the 6th January KI
No.2. The further heavy fall in the dollar to under one shilling
renders financial prospect very serious and there will be a very
heavy deficit on the year unless there is a considerable rise
in silver. Additional taxation has been introduced ky vide my
10 despatch of the 23rd October, 1930,No.558 and it will be very
difficult to make further additions in present conditions.
With the dollar even at one shilling increased expenditure in
respect of sterling commitments would amount to approximately 3,500,000 dollars of which sterling salaries would account for
an increase of 2,250,000 dollars over Estimates if paid in full
at current rata. Unless some limit is imposed/rate of conversion
on
there will be very serious dissatisfaction in the Colony.
If proposed alteration in exchange rate were adopted officials
would still draw better salaries than those in force prior to
new scheme therefore I do not consider such adoption would be
a hardship. Generally speaking an officer drawing half his salary
at current rate of exchange would thereby meet his sterling
commitments without lose while in view of the fact that local
cost of II living apart from costs based on sterling value has
not risen proportionately to fall in the dollar an officer would
not be placed at a disadvantage if other half of his salary were
paid at the rate of one shilling and sixpence to the dollar.
In view of the very serious position created by this unexpected
heavy fall in exchange I strongly urge reconsideration of your
decision.
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