CO129-525-3 Estimates 1931 and other financial papers 16-1-1930 - 1-9-1932 — Page 33

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as a matter of fact is modified from time to time,

cannot be treated as if it were a promise of a

substantive salary. It is only necessary to

think what the sterling value of the Hong Kong

dollar was towards the end of the war, to see into

what absurdity that doctrine would lead us.

The

Hong Kong dollar sterling arrangements mu st

therefore be regarded as a matter liable to change

from time to time.

If this is so, then we have to ask

our selves does the proposed alteration

of the

agreement really inflict hardship on tho se

concerned, over and above a mere reduction of

temporary and incidental advantages they enjoy

for the moment. The answer is given by Sir William

Peel in his statement that the cost of living has

not increased with the fall of the dollar to the

extent anticipated.

I therefore agree with Mr. Ellis and

would approve the Governor's proposals.

G.G.

22.12.20

Bec of State.

I kept this, as I wanted t

deseiers with to Department.

the

As the prevent arragement only

Ame into fance

and

as no

bix months fo

warring was given

as to such rates of exchappe being vered from time to time,