HONG KONG LEGISLATIVE COUNCIL.
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possible, owing to the visit of such an expert to Singapore, who will be able to combine his work in the two colonies in one visit to the East.
Exchange Rate of Sterling Salaries.
The burning question of Government salaries was only discussed last June and has been touched on to-day. It looms large in the public eye. I am satisfied that the basic proposals were on the whole equitable, but feel that the abnormal rate of exchange is perhaps unduly favourable. I considered the question of putting a low limit on the rate of conversion of sterling salaries into dollars, but was of opinion that it was unwise to do this at once. one hand, local cost of living might have increased in proportion to On the the fall in the dollar, while the dollar itself might have gone up. Neither of these eventualities has occurred, and it is necessary to review the position. I am prepared, subject to the Secretary of State's approval, to agree to the suggestion regarding the bases of conversion of sterling salaries into dollars. Half will be converted at the current rate, or more properly speaking, the Treasury rate, of exchange, and the other half at 1s. 6d. to the dollar. The estimates next year have been prepared on the basis of a 1s. 4d. dollar, and it is estimated that the adoption of this proposal will effect a reduction of $388,888 in the expenditure, thus reducing the estimated deficit to a more reasonable figure. It is too late to make the necessary alterations in the estimates without causing undue delay in submitting them to the Secretary of State, but I give you an assurance that this basis will be adopted, subject to the Secretary of State's approval. I trust that this step will go some way to meeting the criticisms regarding the increase of the dollar emoluments of Government officers.
I thank the unofficial members for their assurance of the con- tinuance of their whole hearted support. I felt confident of such support, but it is none the less gratifying to receive the assurance given.
I am sorry that my first Budget in this Colony is not a more pleasant one, but with the restricted resources at my disposal, I have endeavoured to provide for adequate maintenance and for the upkeep of efficiency to a reasonably safe level. We have, so to speak, a good deal in hand, and will not suffer much if the rate of progress, which must naturally be commensurate with our resources, is some- what slowed down. Meanwhile, I look forward with confidence to improved conditions, and am convinced that we need have no fear as regards the future prosperity of this Colony.--(Applause).
The Bill having been read a second time the Council went into Committee to consider the Bill clause by clause.
H.E. THE GOVERNOR.-I do not propose to go through each item unless any Honourable member intimates that he wishes to move an amendment in regard to Clause 2.
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