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should be expressed in the currency of

that Colony.

5. The terms on which the existing

sterling salaries may be converted to a

dollar basis would plainly require careful

consideration.

However, pending any

definite decision on that matter, I

strongly recommend that no new appoint-

ments should be made on sterling salaries.

Although it is difficult to predict the

future of the Hong Kong dollar with any

degree of confidence, I am of the opinion

that the establishment in Hong Kong of a

managed currency will lead to a greater

stability in the sterling value of the

dollar, and that the payment in dollars

of

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