25

receive the current rate of exchange of their sterling calories, I might agree,

but we know that when the dollar was

high they got a fictitions rate fixed which favoured them. The real anomaly is that they have sterling salaries at all. They ought all to be on dollar salaries as in Malaya.

Priers

Moreover of the present bases these

are

to receive an

exchange rate of

1 ff =2!-, even if the dollar goes above 2/-

I can, therefore,

see no reason for

not accepting the Governor's proferal " hat they should receive re rate 1 $=1/-,

the dollar falls below 1/-

even if th

On the marits I aur satisfied (1) that

In

there has been no real hardship

in the

arrangement

of living

in

now

force

as

the local cort

has not risen to the extent of the

J

fall in exchange; 12; that the civil servants

who really deserve rympathy

are the

Europians on dollar calories; (3) that it is

politically unwise to impore extra tagation in order to pay un extra $1,250, 500 to a small select class of

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