(I apologise for the delay: I have been at
Paris. I deal with para: 8 (a) only. To prevent
any possible misconception, I should perhaps say
that I dislike, strongly, the salary scales
we propose to send to H K. But that point is
not really in issue here.)
I agree as to the advisability of doilar salaries
probably
for H K--coupied with some exchange compensation
allowance provision. But I very much doubt
whether it is desirable to press on the Govr:, at
this stage, the suggestion that H K salaries should
be reviewed, and fixed on a dollar basis. The dollar
has, in quite recent times, fluctuated greatly in
exchange value; things cannot have " settled down"
yet on the present--fairly stable for three or
four months--basis. We ao not know whether that
basis will be maintained; the whole situation is
most uncertain. In these circumstances, how can
the Govr: fix H K salaries at present, on a dollar
basis? Our strong suggestion that he should will,
& I fear, be resented; and will place him in a very
difficult position. We all--I think--more or less
expect that he will reply that our suggestion is
impracticable. f so, why make it?
. The time for fixing H K salaries on a dollar
basis has, I should say, clearly not come yet.
Nor would any fixation, in present circumstances,
be likely to stand the test of time--except by
a somewhat fortuitous combination of favourable
circumstances, which we have no right to
anticipate, or perhaps to expect. If things go as
we hope they will go, that time should not be far
/
6