CO129-533-13 Salaries- conversion rate of sterling 30-1-1931 - 21-1-1932 — Page 343

Enclosure No 3

3,

Extract from Hong Kong Daily Press of

30th January, 1931.

EXCHANGE

DEBACLE.

BUDGET DEFICIT MAY EXCEED FIVE

AND A HALF MILLION DOLLARS.

GOVERNOR APPEALS TO CIVIL SERVANTS FOR SPIRIT OF LOYALTY: SALARIES CUT IMPERATIVE.

POSITION TO BE REVIEWED FROM TIME TO TIME BY GOVERNMENT.

That the financial position of the Colony was very serious in- deed was indicated in a speech made by H.E, the Governor at a meeting of the Legislative Council held yesterday. His Ex- cellency pointed out that if the dollar were to average 1/- for the current year a sum of $3,388,861 would have to be added to the expenditure figures. Coupled with the deficit actually shown in the Budget, the figure would come to $5,687,957, which was perilously near the Colony's present surplus. Were the dollar to average 11d. a further 14 millions would be required.

Touching upon the new method of conversion of sterling salaries into Hong Kong dollars, the Colonial Secretary said that the question would be reviewed by the Government from time to time. In connection with this matter, Sir William Peel voiced the hope that civil servants would accept the position in a true spirit of loyalty and would realise that the step was absolutely impera- tive.

UNOFFICIALS THANK GOVERNMENT.

Those present were:-

H.E. the Governor, Sir William

Peel, K.C.M.G., K.B.E. The Officer Commanding the

Troops, Colonel R. Cousens.

E.

Hon. Mr. C. G. Alabaster, K.C.,

O.B.E. (Attorney-General). Hon. Mr. A. E. Wood (Secretary

for Chinese Affairs).

Hon. Mr. C. McI. Messer, O.B.E.

(Colonial Treasurer). Hon. Mr. H. T. Creasy, C.B.E.

(Director of Public Works). Hon. Mr. E. D. C. Wolfe, C.M.G. (Inspector-General of Police). Hon. Comdr. G. F. Hole, R.N.,

retired (Harbour Master). Hon. Dr. A. R. Wellington (Director of Medical and Sanitary Services). Hon. Sir Shou-son Chow, Kt. Hon. Mr. R. H. Kotewall, C.M.G.,

LL.D.

Hon. Mr. J. P. Braga.

Hon. Mr. S. W. Tso, O.B.E.,

LL.D.

Hon. Mr. C. G. S. Mackie. Mr. N. L. Smith (Deputy Clerk

of Councils).

STERLING SALARIES.

The Colonial Secretary then moved:

That this Council approves the modification of its resolution of the 19th June, 1930, on the Salaries Commission Report (set out on page 58 of the Hong Kong Hansard for 1930) by the addition thereto of the following proviso:-

"Provided that, as from the 1st January, 1931, and until the ques- tion of the exchange rate of sterl ing salaries paid to Government servants while serving in the Colony is next reviewed and until such rate is altered with the approval of this Council, this Council ap- proves that such salaries be paid as to half thereof at the rate of 1/6 to the dollar and as to the other half at the prevailing Hong Kong Treasury rate."

In moving the above resolution, the Colonial Secretary said:-

"The resolution now to be put to the Council implements the pro- mise made by His Excellency on the 20th of Otcober, 1930, when, subject to the approval of the Secretary of State, he engaged to accept the suggestion of the Hon. Mr. Paul Lauder, in connection with the exchange rate for sterling salaries, which you are now asked

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