367
To Gov. Gen.
only
should be adopted. Any representations based on assurances referred to above might be answered by referring to the general financial situation and to the proposals as affording reasonable relief, having regard to that situation. In the case of assurances which contained the words "if possible", it might be pointed out that those words referred especially to the financial situation.
7. The last sentence but one of proposed message has been included as it is thought that it might assist you. Outstanding points which have been raised here regarding salaries and allowances should be settled within next three months, but I appreciate that in fixing date to be given in this sentence it will be necessary also to allow time for new salaries and allowances to be calculated locally and for arrangements to be made for payment of arrears. If you feel that it is not possible to give a date at this moment, or that the date would be so far ahead that there would be no advantage in mentioning it, I should of course have no objection to this sentence of the announcement being omitted.
8. As regards payment of arrears I suggest that as payment of whole amount in cash would tend to increase present inflation, substantial part of arrears should be paid in savings certificates, or possibly in holdings in proposed Hong Kong Loan. You will no doubt consider and decide whether it is desirable to make any reference to this possibility in proposed announcement.
Immediate,
Please pass copy to Governor as No. 1244
Copies sent to:-
Treasury
Mr. D.R. Serpell, 0.B.E. Mr. H.R. Apperley.