CO129-601-2 Salaries Commission- currency basis of emolument 27-1-1949 - 23-7-1949 — Page 25

OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

$3723/6/49

Code

TO HONG KONG (Sir A. Grantham)

Sent 10th February, 1949,

No. 171 Confidential,

'

Your telegram No. 83.

13115 hrs.

25

2

Rate of exchange for pensions.

Intention of my telegram No. 640 of 1948

was that option should be exercised at same time ae officer exercised option regarding new terms of service. The officer could opt to receive pension at fixed known rate or to chance e possible gain or loss subject to paragraph 2 of my telegram,

Effect of present proposal appears to be to guarantee a minimum rate of 1/30 whilst allowing an officer to benefit if rate ahould sppreciate before his retirement. This does not appear to have been

envisaged in paragraph 6 of your despatch No. 8 of 1948 or paragraph 4 of your telegrain No. 271 of 1948.

3.

Should eventuality mentioned in paragraph 2 of my telegram No.640 srize before an officer retired, the question whether he would then be allowed to exercise an option would, even under your present propoast, heve to be reviewed.

4. lt ie not clear whether above points vore considered before present proposal wae submt é ted or whether proposal has been approved by Finance Cocmittee. Subject to any further representations you may wish to moke I consider that option should be exercised now.