CO129-346 - Governor Sir Lugard - 1908 [1-3] — Page 250

OP Y.

Enclosure 1

Supreme Court,

DAM

Hongkong, 1st.February,1908,

C.0.

sir,

10041

REC2 IRES 21 MAR 08

I have the honour to acknowledge Your Ex-

-cellency's letter of 28th, January, and to say that I am glad to find that my remarks on the subject of the rate of exchange at which Sterling Salaries should be paid will be sent forward to the Secretary of State. With reference to the Treasurer's interpretation of the Secretary' of State's Despatch, I can only say that I much regret that the Treasurer did not take the trouble to inform me what his interpretation was. A little friendly discussion in a difficult matter like a question of exchange would I think have been beneficial, and it certainly might have saved Your Excellency some trouble.

2.

I much regret that I have been unable so far to get the Table of daily rates of exchange since the dollar last touched 2/3, which I referred to in our conversation. I can only get a reliable table from the Bank, and the Assistants have all been exceedingly busy of late. It seems to me most material to the realization of the complicated nature of this problem, and all others connected with the subject, that the Secretary of State should have before him a table shewing the extraordinary variations which have in recent months taken place in the rate. A table is being prepared for me, but it is not necessary to include it in Your Excellency's next despatch; as it can be forwarded by a subsequent mail.

3.

Since writing to Your Excellency amethod has occurred to me of making the existing rate of the average period apply to the new scheme of paying salaries without any verbal alteration. 1. Let it be understood that the rate of exchange at which salaries are to be paid is 2/- or less if the rate falls below. ii. Then let this be applied to the existing

average period, and all difficulties will disappear.

4.