CO129-574-6 Hong Kong pensioners in India- rate of exchange 31-8-1938 - 26-10-1938 — Page 27

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consideration the revision of the present practice of paying

pensions in India at the conventional rate of exchange of

Hong Kong $100 equals 112 Rupees and of the reversion to the

system in operation before the year 1930 of payment of such

pensions at the current rate of exchange, that is to say,

average daily rate of the quarter preceding payment.

the

6. It is intimat ed by the said Circular that your

approval is being sought for the application of the current

rate of exchange to all pensions granted on or after the 1st

Sept ember 1938, and finally the possibility is indicated that

the conventional rate of exchange applicable to pensions

payable in India which were granted before the 1st September

1938 may also be revised.

7. It is relevant to recall that in the year 1930 the

value of the Hong Kong Dollar in relation to foreign exchange

generally, fell very markedly and that such fall was accompanied

by great uncertainty as to its recovery, in consequence of which

it became necessary for the Government of Hong Kong to give

consideration to the matter of adjusting exchange rates in the

payment of salaries and other emoluments to such of its officers

as were affected.

8.

In earlier years officers, who were not on sterling

salaries, retired on pensions in England which were paid at

fixed rates of exchange, and when the Hong Kong Dollar fell

below the value of three shillings, were favoured by the rate

granted. Your Petitioners believe that such cases are still

ext ant

•

9.

In the circumstances arising in 1930 and based on

the precedent referred to in the last paragraph, steps were

taken to preserve in some measure the value of the pensions

earned by Indian Officers on retirement, and a minimum

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