CO129-555-14 Sterling Conversion rate for December salaries 21-11-1935 - 19-12-1935 — Page 14

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Part 3.

Equality of sacrifice between officers on sterling and dollar salaries to be achieved by converting the former after deducting levy at 1/6d during the first quarter 1/54d second 1/4 third and 1/3 d last

quarter thus taking into account not only time lag in rise of local cost of living but also fact that Part 1 provides sufficient levy on salaries of officers on furlough Resultant savings Dollars (Hong Kong) 600,000.

Total savings between one and one and a quarter million would be roughly equivalent to extra revenue collected from

the public in tax levies at conventional dollars

of 1/8d.

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Part 3 should cause no hardship vide clause 13 of Salaries Commission Report Sessional Paper No 7 of 1929 Intention

was to retain number of Dollars already being drawn by an Officer but Commissioners overlooked fact that at 1/8d exchange their basic increase of 15% would begin to yield larger sums in dollars.

All three parts would be applied to net salaries after deducting Widows and Orphans Pensions contributions.

Please telegraph whether you approve Scheme in principle and general outline in order that I may consult the Executive Council and prepare legislation early.

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