engaged at discussions on the East African Salaries Commission Report). He was unable to call to mind any current instances of such a procedure in other colonies, but such may exist. It would take some time to establish the facts as regards all other colonies and I am not delaying putting up these papers while it is done.

4. I fail to follow the Treasury argument that "if fluctuations did occur to such an extent as to make the officers appreciably worse or better off, then clearly the fixed rate would have to be revised, so no additional stability

would result". The whole reason for the proposal is to remove any possibility of officers on pension becoming worse off and there goes with this the corollary that they cannot become better off either (unless the dollar salaries, on which their pensions will be based, are revised so as to increase their nominal value - and this possibility it is specifically proposed to provide against).

5. The Governor says in paragraph 5 of (11) that he believes that non-acceptance of the course he proposes will give rise to a very real sense of grievance; what Mr. Sloss has told us emphasises this; and the turning down of the Governor's proposal would of itself inevitably increase the anxiety which already exists. In these circumstances higher authority may feel that we should not accept the Treasury view without a further effort.

√. wollen

12.5.48.

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