CO129-574-6 Hong Kong pensioners in India- rate of exchange 31-8-1938 - 26-10-1938 — Page 41

NO. CONFIDENTIAL

Sir,

39

GOVERNMENT HOUSE,

HONG KONG,

31st August, 1938.

*

I have the honour to refer to correspondence

ending with Sir William Peel's confidential (2)

despatch of 9th September, 1930, regarding the payment

of Hong Kong pensioners in India. In that

correspondence approval was given to the payment of

pensions in India at a fixed rate of exchange of

Hong Kong $100 = Rupees 112, and this arrangement

has continued undisturbed until the present. The rate

of exchange between Hong Kong and India has now been

stabilized in effect for two or three years at

approximately Hong Kong $100 Rupees 83 and I can see

no justification for a continuance of any artificial

rate for the payment of pensions in India.Notification

has accordingly been issued to the effect that,

subject to your approval, the current rate of exchange

will be applied to all pensions granted on or after

1st September, 1938, subject to a proviso to cover the

cases of officers who had decided before that date to

retire voluntarily. A copy of the circular is

enclosed for your information.

2.

I shall be glad to receive your approval of

the application of the current rate of exchange to all

future pensions. I consider also that there is a

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&C.,

&C.,

&c.