CO129-601-1 Salaries Commission- currency basis of emolument 9-1-1948 - 5-6-1948 — Page 67

It seems to us that this rate is fair

to the officer and convenient to Government.

Ceam for am

The

officer knows what his pension will be in sterling

and the Government has a fixed and convenient rate

of exchange for purpose of estimates.

As you are aware, the Hong Kong dollar is

and has been fixed de facto at 1/3 since before the

world war and there is no prospect of the rate being

found dollar is definitely tied to the £ as

altered.

June

all the currency reserves are in sterling.

At present both in Malaya and Hong Kong there

is an excessive spread between the buying and selling

rates of local currency which we are endeavouring to

have narrowed with an ideal par of 2/4 and 1/3

for de frimpone under rossance desire to avoid

respectively.

We

and

question of

buying and selling rates and to adopt a fixed and

correct figure as was done in Malaya. The alternative

would be to quote salaries in sterling (for leave and

pension purposes) as well as in dollars,

But this

would be contrary to the spirit of the Commission's

recommendations and there are obvious disadvantages.

I understand that Butters mentioned

to have

this matter to you and that you wished' the proposal

in writing for reference to the other Treasury Departments

concerned. We should be grateful if we could have an early

reply as Hong Kong desires the question of salaries

revision to be finalised as soon as possible.

Yours sincerely,

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