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of exchange on London of the Hong Kong and Shanghai Banking Corporation from the 15th of the preceding

month to the 15th of the month on which payment was

provided

to be made, subject that such average demand rate of

exchange on London for the month was 2s/-, or less

than 2s/-, but if the average demand rate of exchange were more than 2s/-, the salaries should be paid in dollars - Hong Kong currency-at exchange 2s/-. In

addition to the above, they recommended that the

Government at its discretion should continue to pay

a high cost of living allowance to officers, but not

exceeding 15 per cent of the nominal sterling salary of married officers and 7 per cont of the nominal

sterling salary of unmarried officers.

The recommendation for a high cost of

living allowance was not adopted, but the proposed

new system of conversion was introduced with effect

from the 1st January, 1930.

In view of the very considerable fall in the

dollar exchange since the date of the Salaries

Commission's Report, the Secretary of State has approve

a modification in the system of conversion with effect

from 1st January, 1931. As long as the exchange is

below 18/6d, sterling salaries will be converted as to

half at ls/6d and as to half at the current rate of

exchange. The present system is, therefore;- exukange below 18/6d, half at is 6d exchange at le/6d and

1s/6d.

above, but not above 23, at ourront rate:

28/ at 20/-.

above

Exchange below 1/6 4:-/1⁄2 at 1/6d and 1/2 at current rate,

Exchange at or above 1/6d but not above 2/-:- at

Current rate.

Exchange above 2/- : at 2/-

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