and it can fairly be used as the basis for

the conversion of leave salaries and pensions.

The Governor of Hong Kong, in the

enclosed telegram, urges that expatriate

officers already in the Service, if they opt

for the new terms of service, should also

be given the option of having their pensions

calculated and paid at a definite conversion

rate viz. 16 to the pound. It is evident

from what the Governor says that the

officers concerned feel very strongly about

this matter, and the fullest weight must

clearly be paid to Sir Alexander Grantham's

opinion that any other course than that ·

which he urges would be unduly harsh and

would give rise to a very real sense of

grievance.

We therefore support the Governor's

proposal and trust that the Treasury will

see no objection to our sanctioning it. If

you could let me have your reply by telephone

I should be obliged as we have had two

telegraphic reminders from the Governor

asking for a telegraphic reply.

Yours sincerely,

gument.

(12) + (13)

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