CO129-558-8 Revision of salaries 19-8-1936 - 11-2-1937 — Page 6

(I apologise for the delay: I have been at

Paris. I deal with para: 8 (a) only. To prevent

any possible misconception, I should perhaps say

that I dislike, strongly, the salary scales

we propose to send to H K. But that point is

not really in issue here.)

I agree as to the advisability of doilar salaries

probably

for H K--coupied with some exchange compensation

allowance provision. But I very much doubt

whether it is desirable to press on the Govr:, at

this stage, the suggestion that H K salaries should

be reviewed, and fixed on a dollar basis. The dollar

has, in quite recent times, fluctuated greatly in

exchange value; things cannot have " settled down"

yet on the present--fairly stable for three or

four months--basis. We ao not know whether that

basis will be maintained; the whole situation is

most uncertain. In these circumstances, how can

the Govr: fix H K salaries at present, on a dollar

basis? Our strong suggestion that he should will,

& I fear, be resented; and will place him in a very

difficult position. We all--I think--more or less

expect that he will reply that our suggestion is

impracticable. f so, why make it?

. The time for fixing H K salaries on a dollar

basis has, I should say, clearly not come yet.

Nor would any fixation, in present circumstances,

be likely to stand the test of time--except by

a somewhat fortuitous combination of favourable

circumstances, which we have no right to

anticipate, or perhaps to expect. If things go as

we hope they will go, that time should not be far

/

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