23
18 Lov Tit Conf
TEL Suggesti
would
pand at
additional
allow sterling
1/9
latation which
Calaries
current rates,
that payment of salares quarters at full rate and
مالا لله
would remove.
Grievance
to be
but submuli
one
three
quarter
uny legitimate
Requests urgent reply
As I understand, the expedient of
paying sterling salaries, not at
their
but in this connection
see his sheech in heg.
G.
on 10
12
1 July - h.83 of Hansard herewith
5.C.
full value in the local currency, but at
a conventional rate, was adopted on the grounds
of extreme financial stringency. The justice
of the expedient was somewhat doubtful and
it has given rise to a good deal of criticism
in Parliament. Finally, the Governor was
informed in No. 15 that the Secretary of
State considered that conversion at the
current rate must be restored on the 1st of
January, 1932, unless the Governor found it impossible, on that basis, to balance
the 1932 Budget. He now reports that,
with additional taxation, which is not
unreasonable or oppressive, it will be
possible to balance the 1932 Budget even
after paying sterling salaries at the
full rates. The additional taxation
X
proposed would, moreover, leave a surplus
of over $500,000 available for other purposes.
It appears, therefore, that the plea of
extreme financial stringency no longer
exists, and that the payment of salaries at
the