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A

disposal of the silver on the market, it can

still probably be presumed that it will be

possible to realise it profitably for the

benefit of the Exchange Fund in due course.

In the circumstances, therefore, I am

doubtful whether we need telegraph to Hong Kong,

but we should send a despatch by air mail

sanctioning Ordinance No. 40 and approving the

Estimates generally. We should add that in the

difficult circumstances, complicated as they are

not only by the depression in trade, but also by

the recent exchange movements, the Secretary of

State has no doubt that every legitimate form

of economy will be exercised; /and say that he

regrets the necessity for the imposition of a

temporary levy on the salaries of Government

officers in relief of Government expenditure in

the present period of stringency, and that it is

most desirable that this levy should not be

continued any longer than is necessary, and that

in order to effect the restoration of a normal

position the 0.A.G. should consider, as occasion

offers, whether the present level of salaries

is such that in all cases they are justified,

and whether the prospect of the normal conditions

which may be expected to apply in the future,

would call for any reduction on a permanent

in the case of new intaut

basis of the present salary scales and remunera-

tion standards which have hitherto been operative

in Hong Kong. Finally, we might ask for

telegraphed information to be sent home at the

end of each month to show the revenue and

expenditure figures which are achieved through

the year.

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