It seems to us that this rate is fair
to the officer and convenient to Government.
Ceam for am
The
officer knows what his pension will be in sterling
and the Government has a fixed and convenient rate
of exchange for purpose of estimates.
As you are aware, the Hong Kong dollar is
and has been fixed de facto at 1/3 since before the
world war and there is no prospect of the rate being
found dollar is definitely tied to the £ as
altered.
June
all the currency reserves are in sterling.
At present both in Malaya and Hong Kong there
is an excessive spread between the buying and selling
rates of local currency which we are endeavouring to
have narrowed with an ideal par of 2/4 and 1/3
for de frimpone under rossance desire to avoid
respectively.
We
and
question of
buying and selling rates and to adopt a fixed and
correct figure as was done in Malaya. The alternative
would be to quote salaries in sterling (for leave and
pension purposes) as well as in dollars,
But this
would be contrary to the spirit of the Commission's
recommendations and there are obvious disadvantages.
I understand that Butters mentioned
to have
this matter to you and that you wished' the proposal
in writing for reference to the other Treasury Departments
concerned. We should be grateful if we could have an early
reply as Hong Kong desires the question of salaries
revision to be finalised as soon as possible.
Yours sincerely,
67