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

Colonial Office,

The Church House,

15

Great Smith Street,

S. W. 1.

2374

July, 1949.

Ref: 15511/49.

Bear Follows,

I am replying to your letter of the 5th April to Sidebotham about the rate of exchange to be applied to the pensions of expatriate officers. I am sorry for the delay but we have had staffing difficulties culminating in Sidebotham's absence sick for nearly five weeks. (He is now back, but on medical advice is not working full time for the present).

I think there must be come misunderstanding between us which probably accounts for the difficulties referred to in your letter. As we see it, there is always a danger in giving an unconditional guarantee as regards the future when it is not possible to foresee what may happen in the future. In these circumstances it seems to be essential to be quite precise as to the conditions under which the guarantee is to operate. At the same time we sympathise with the desire of expatriate officers to know how they would stand when they retire on pension, if there were to be any alteration in the rate of exchange now existing between the Hong Kong dollar and sterling. Where the confusion arises, I think, is that a change in the rate of exchange might either be only slight ao that no revision of dollar salaries would be justified, or on the other hand, it might be of such a size that some alteration in the dollar salaries would have to be

ade. Paragraph 4 of your letter and paragraph 2 of

C.G.D. FOLLOWS, ESQ., C.M.G.,

COLONIAL SECRETARIKET

C.M.G.,

the

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