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fidentially with figures showing that many of the large

industrial concerns and business houses, apart from paying

sterling salaries at a fixed rate of exchange, have made

definite cuts in pay. In addition overhead charges have been

decreased by reduction of staffs.

In all these circumstances, the community feels that

its proposal that official salaries should be paid at the

current rate but reduced by 10 per cent. ought to have been

accepted by the Government, and it has asked my Committee to

represent that view to the Secretary of State. In doing so I

am instructed to express the agreement of my Committee with the

Hongkong Chamber of Commerce and the Hongkong branch of the

China Association, and to express the hope that the decision tỏ

pay salaries at current rates, without any reduction of their

sterling amounts, will be reconsidered.

I have the honour to be,

Sir,

Your obedient Servant,

Elle. Gall.

Secretary

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