CO129-451 - Public Offices - 1918 — Page 50

Sir,

COLMODORES OFFICE.

HONG KONG,

26th June 1918.

48

With reference to your telegram No.420, in reply to my No.160, in regard to the conversion of sterling pay into dollars, I have the honour to submit that the increase in the issuing rate of the dollar fully justifies the application, and that you will telegraph to the Admiralty strongly recommending an immediate

further concession.

I would call attention to the fact that, at the time my predecessor's letter No. 450 of 22nd November 1916 was written and the serious concern and financial embarrassment were pointed out,

Now it is 3/1 and will the Official rate of the dollar was 2/38. be 3/2 next month, and the approximate average rate at which sterling pay is received, after allowing for the concessions already granted is 2/74. In September 1917 when the Admiralty telegraphed that "the matter is under consideration" the official rate was 2/848, so it will be seen that now, with the concession, we are but little better off than we were at that recent date, without it.

The real point at issue is that so many dollars are required each month to meet expenses, and it matters not whether the dollar rate be 1/94 or 5/-, or by what percentage we are

benefitting over the current rate, so long as the necessary

number of dollars are received each month to meet expenses.

All prices are in dollars and do not decrease as exchange rises

on the contrary they are continually increasing. It ought to

COMMANDER IN CHIEF.

be

H.M. SHIPS AND VESSELS,

CHINA.

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