NO. CONFIDENTIAL
Sir,
39
GOVERNMENT HOUSE,
HONG KONG,
31st August, 1938.
*
I have the honour to refer to correspondence
ending with Sir William Peel's confidential (2)
despatch of 9th September, 1930, regarding the payment
of Hong Kong pensioners in India. In that
correspondence approval was given to the payment of
pensions in India at a fixed rate of exchange of
Hong Kong $100 = Rupees 112, and this arrangement
has continued undisturbed until the present. The rate
of exchange between Hong Kong and India has now been
stabilized in effect for two or three years at
approximately Hong Kong $100 Rupees 83 and I can see
no justification for a continuance of any artificial
rate for the payment of pensions in India.Notification
has accordingly been issued to the effect that,
subject to your approval, the current rate of exchange
will be applied to all pensions granted on or after
1st September, 1938, subject to a proviso to cover the
cases of officers who had decided before that date to
retire voluntarily. A copy of the circular is
enclosed for your information.
2.
I shall be glad to receive your approval of
the application of the current rate of exchange to all
future pensions. I consider also that there is a
THE RIGHT HONOURABLE
MALCOLM MACDONALD, M.P.,
&C.,
&C.,
&c.