CO129-504-16 Junior Cadet Officers of Hong Kong Civil Service- petition for revision of salaries 18-12-1926 - 6-7-1927 — Page 33

I am doubtful about the argument in §6 of the

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despatch, which suggests that the increase in prices brought

about by a fall in exchange is confined to imports from

sterling countries. Hong Kong currency is on a silver basis,

and I think that past experience shows that a decrease in

the market value of silver means an increase in the cost of

all commodities, and a general rise in the cost of living as

expressed in terms of dollars.

The sliding scale, which was adopted in 1920,

has been remarkably successful, and I venture to suggest that

it should now be adopted to meet the fall of the dollar below

the original limit of 2/6d. This is the logical course, and

it has the merit that it benefits all equally without

discrimination. It is true that officers, who at the present

time have their families in England, will not for the time

being receive as much as they would get under the scheme

proposed by the Hong Kong Government, but the average officer,

whose wife lives sometimes in England and sometimes in Hong Kong

will prefer the permanent benefit of the sliding scale to the

temporary remittance privilege.

Yours sincerely,

(Sa) A.G.M.Fletcher.

I return the copies of the despatch and telegram

which you lent me.