12 Gov.

tel.359

1-4-48

15

Mr. Seel

We need not, I think, go any further into the arguments advanced by Mr. King and contested by Mr. Butters, since both C.S.D. and Finance Department support the Governor's proposal to give an undertaking that, although all pensions will in future be assessed in dollars, expatriate officers already in the service, if they opt for new terms of service, may also if they so desire opt to have their pensions calculated and paid in sterling at the rate of $16 to the £. (see paragraph 4 of No.11).

I send this forward because Mr. Serpell's first reaction to the Governor's proposal was that it was a "non-starter" (see paragraph 6 of Mr. Wallace's minute of the 31st March) and also because. I understand that Mr. Serpell, with his usual tact, said to Mr. Wallace on that occasion that if we did decide to put the proposal to the Treasury, he hoped that we would first take advice from someone who knew something about currency, and mentioned Mr. Gorgelt Barnes's name.

by. Mayla

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