CO129-558-8 Revision of salaries 19-8-1936 - 11-2-1937 — Page 3

3

MP

unaffected, are relieved of immediate reactions

For this reason the

to exchange fluctuations,

tendency in Colonies where the currency is not

directly linked with sterling has been more and more

in recent years to express salaries in local currency.

The general revision of salaries

which we are now proposing is aimed to the production

of a revised permanent salary scheme on the basis of

the general principles and salary levels which have

been evolved for unified services; I doubt whether

it is worth while in present circumstances, while the

exchange relation between dollars and sterling is

still entirely obscure (as No.2 indicates) to attempt

a revision of this nature on a sterling basis, since

it will be liable to be entirely upset at any time by

exchange movements. I should propose, therefore,

to invite the Governor of Hong Kong to accept the

principle of expressing all salaries in dollars

and to submit proposals for the general revision on

that basis

-

leaving it open to him to make

representations if, but only if, he sees strong objection

to the idea.

It will be necessary, when the new

salaries have been drawn up in any case to consider

1

whether and if so and on what terms, serving officers

should be given the opportunity or called upon, due

regard being had to existing rights, to accept them.

Those who do, will automatically come on to the dollar

basis, but the question of converting to a dollar

basis the salaries of officers to whom the new

conditions may not otherwise be applied should also

if necessary, receive consideration, and we should say

so,

writing generally on the lines of the last paragraph

of