в.1. b.l. r.

1. Gor. Bonf

втр

2

31.8.38.

Proposes to apply current rate of exchanget all pensions graunteds after 1/9/38 & ends circular. Rights

Akpot.

In 1930 we approved the Governor's proposal

that Hong Kong pensions in India should be paid at

the rate of $100 Rs.112. This was recommended

on the grounds that pensioners had been badly hit

by the fall in the value of the Silver Dollar.

The Hong Kong currency has now been stabilised

in effect for a time at approximately $100 Rs. 83

and the Governor recommends that in future the pension s

should be paid at this rate, as there is no longer

justification for a continuance of the artificial

rate.

He also states that he considers there is a

strong case for reviewing this arrangement for

existing pensioners and recommends that as a

compromise a pension should be paid at the rate of

$1.00 - Rs. 1.00.

As far as the first proposal is concerned I

entirely agree that there is no reason for continuing

the artificially high rate. I am not sure that

there is any justification for continuing this in

the case of the existing pensioners since it appears

that at the present rate they are receiving

considerably more than the temporary relief which

was contemplated when the rate was fixed in 1930.

This rate has now continued for some time, however,

and as the total cost involved would appear to be small (see paragraph 3 of No. 3 on 72888/30), I

think we may approve the Governor's proposed

compromise.

Subject

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