CO129-393 - Governor Sir May - 1912 [11] — Page 287

279

in case the dollar at Hong Kong is ever placed

on a gold basis (we shall no doubt have to wait

for China to move first, but under American

pressure and probably by American guidance it

is bound to come some day ) and indeed our

hands must be free from the time when steps begin

to be taken with that end in view.

I have felt some uneasiness that when the

2/ arrangement was agreed to in 1907 no

reser-

vation was made as to revision in the future, and

especially in the event of a gold standard being

set up

a gold standard would almost certainly

have to be based on a dollar of more than 2/-;

as in the Malay Peninsula ). But fortunately

under the present proposals the 2/-arrangement

will disappear altogether, and we can make clear

reservations in acceding to Sir H.May's present

proposals.

I presume Sir H. May means what he says

with regard to converting 80 per cent of salaries

at 1/9

-

1.e. that conversion will take place at

that rate even if the dollar falls below that

figure it has fallen in the past to 1/6 ) I f

4/17

so, it means in reality that of our officers'

salaries will again be on a dollar basis and not

on a sterling basis at all, except when they are

anad.

out of the Colony, on leave or on pension. I do not

oppose this, since the represent what they spend

local

locally, and since dollar prices do not change much

A

in consequence of changes in exchange. But it is

well to realize what we are proposing to do, and

the point is so important that I would tel.

yor.

H. X detonating

nugonis plumbarit

Your conf: desp. 22 Nov. presume you intend three-

parheleoci

cunties

Saxifrage 80 per cent of salaries should be converted at 179 Saxifrage remprunter

enfeoffed

even if exchange falls below 1/9 Tel. reply.

Sent. 4.20pm

Tom'

23. Jan 13

Telegraft

AwĈ

22/1

M

proposed. but the answer will be in the negative.

atones

14..

23.1.13