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suggest that pensione once they had commenced should be revised and if that is the point which is worrying the expatriate officers we should be quite prepared to consider in what way it could be covered.
To sum up, we are in full sympathy with an afficer's desire to be assured that his sterling pension should not be subject to a decrease on account of exchange variɛtions. On the other hand it is but reasonable that the Secretary of State should not be expected to give an unconditional guarantee which might camat the Hong Kong Governnant to payment of sterling pensions at a rate considerably higher than that envisaged when the guarantee was given.
Perhaps you would let us know if after reading this letter you consider there are still risks against which expatriate officers can reasonably ask to be safeguarded; but I feel I must say quite frankly that, on the information at present before us, we cannot see any justification for advising the Secretary of State te withdraw the proviso made in paragraph 2 of his telegram No. 640.
Yours sincerely,
(Sal) withallan
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