CO129-558-3 Levy on Salaries- petition from Chinese Civil Servants 3-1-1936 - 19-12-1936 — Page 15

15

(*ive.

i-e. Than 1/69 to 25/8 then wach

to 19/49 and up to 10/69)

weeping

presumably it is hardly likely to fluctuate

much more than the Indian rupee did during

the years round about 1920. It would clearly

be a great convenience if it were possible to

fix some arbitrary rate at which existing

sterling salaries could, without gross unfairness,

once and for all

be converted into dollar salaries, as-a-permanent

measure: Suppose, for example, the rate of

1/4d were taken; under this plan all sterling

salaries would forthwith be converted by

legislation into dollar salaries on the 1/4d

basis, and would then become subject to the same

levy as other dollar salaries so long as that

remained necessary. Leave pay and pensions

could be issued at conversion rates to be fixed

by the Government from time to time. In the

event of the dollar remaining permanently below

1/4d officers would, of course, be receiving

less than they could have got on the basis of

the current rate of exchange; on the other hand,

if it should rise above 1/4d, they would be

receiving more.

The question whether it is

now

possible to fix a rate, and what the rate should

and

be, or whether it would be desirable to wait

until things have settled down a bit, is one

for the currency experts; but I suggest that

from the point of view of administration the

immediate

proposal is worth, consideration.

C.J. Jeffries

10.1.36.