53723/6/48.
IF 272/187/04.
Dear Serpell,
Colonial Office,
The Church House,
Great Smith Street,
8. W. 1.
22nd April, 1948.
Ansd. (16)
39
14
Will you please refer to Hong Kong telegram No. 271 of 9th March, 1948, a copy of which has been sent to you, and also to my letter of 12th February, 1948, about the exchange arrangements to be made for the payment of pensions and leave salaries to Hong Kong expatriate officers, as the result of the adoption of the Salaries Commission recommendation that all emoluments should be expressed in future in Hong Kong currency.
2. You will remember that with Treasury concurrence (your letter of 23rd February) we told the Governor that it was agreed that the Malayan precedent should be followed, and that the salaries and pensions of Hong Kong officers should be converted into sterling at the Government rate of exchange. WO felt, and in fact still feel in so far as officers entering the Service on the revised terms are concerned, that this was a reasonable proposal. Leaving aside certain drastic and at present hypothetical contingencies, there is no present reason to suppose that the Government rate of exchange will vary appreciably, and it can fairly be used as the basis for the conversion of leave salaries and pensions.
3. The Governor of Hong Kong, in the enclosed telegram, urges that expatriate officers already in
D. R. SERPELL, ESQ., 0.B.E.
the