CO129-601-1 Salaries Commission- currency basis of emolument 9-1-1948 - 5-6-1948 — Page 40

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It is evident from

the Service, if they opt for the new terms of service, should also be given the Option of having their pensions calculated and paid at a definite conversion rate viz. 16 to the pound. what the Governor says that the officers concerned feel very strongly about this matter, and the fullest weight must clearly be paid to Sir Alexander Grantham's opinion that any other course than that which he urges would be unduly harsh and would give rise to a very real sense of grievance.

We therefore support the Governor's proposal and trust that the Treasury will see no objection to our sanctioning it. There is, however, perhaps one reservation which should be made. If at some time in the future there should be a substantial depreciation in the Hong Kong dollar, resulting in a substantial increase in the nominal value of Hong Kong dollar salaries, then obviously the application of the $16 to the £1 rate to pensions would give expatriate officers a totally unnecessary increase in their sterling pensions. Accordingly we suggest that in agreeing to the Governor's proposal for application to present purposes, we should stipulate that he should make it known that the rate of conversion of 816 to the £1 would fall to be reconsidered in the event of any future revision of the salary rates for civil servants in Hong Kong, which would otherwise, in the case of an upward revision, result in an uncottenanted automatic increase of the pensions of expatriate officers.

If

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