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rights and the Crown Solicitor accordingly holds the

view that the decision in the case of Kr. da Silva was

wrong and that the further applications of Kr. de Souza

and Mr. Sung Teng Man should be rejected. He points out that there can be no question of the fixed rates

having been a privilege or favour extended to officers

appointed before 1902; they were designed, as alrea'y

explained, as a measure of security for officers recruited

in Europe.

7.

I agree with the Crown Slicitor's view of

the question and submit that it cannot equitably be argued

that a system of fixed rates of exchange, designed

primarily to provide security for officers recruited in the

United Kingdom, should now be used to secure the payment

to officers, recruited in the Colony, of pensions of two

or three times the amount which would otherwise be

payable and higher than the actual salaries of the officers

concerned. It is pertinent to point out that the present

salaries of these officers were fixed at a time when the

dollar was worth much less in sterling than the conventional

value indicated by the "privileged" rates. In view, however,

of the suggestion that the old General Orders had created

definite rights attaching to the appointments of these

officers I think it desirable to submit to you for

confirmation of my view.

8. It has also been the practice to calculate

Widows' and Orphans' Pensions based on dollar salaries at

the rate of three shillings to the dollar when paid through

the Crown Agents for the Colonies. This is still provided for in General Order No.202 (4) of the current edition and,

unlike the arrangements with regard to ordinary pensions

and leave salary, is founded of a formal resolution of the

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