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at 1/10d. the former figure drops to £1,276, while the latter remains constant, and a slight loss is converted into a substantial gain. Similar divergence occurs when the value of the dollar rises above 2/-. £1,000 nominal then becomes on the existing system £1,404, while £1,150 and 15% becomes £1,433, since under the new system the exchange rate for conversion purposes is not to rise above 2/-. This difficulty does not, of course, arise with dollar salaries, but it is clear that the system of application must be uniform throughout the Service.

(ii) Attention is invited to the statement in paragraph 14 of the Report that, in order to counterbalance the increase in the cost of living, a rise of 20% in dollar salaries is called for. This pronouncement further strengthens the contention that the present salaries of the local employees of Government are inadequate.

(iii) It is considered that the revised salaries should count in full for pension, i.e., that the pensionable salary of an officer who at the date of revision has been three years in a given post, grade or class (or one with the same salary scale) should be his revised salary and not the average of his revised and old salaries. Similarly, where the last three years of service have been in posts with different salary scales, the average to be struck should be that of the revised salaries of both posts and the same rule should apply where the earlier post was formerly on the same scale as the latter but under the revision is on a different scale.

The first part of the rule proposed above requires no argument. For apart from the fact that any other application of the new scheme would delay for three years the full effect of one of its main objects, the rule requiring emoluments to be averaged for present purposes operates only when there has been some change of office which is not the case here. The other proposals are natural corollaries of the main proposition.

January 20th, 1930.

W. T. SOUTHORN,

Colonial Secretary.

Enclosure No. 4 to Governor's despatch of 22nd January, 1930.

Comparative Tables of Personal Emoluments (estimated) payable under existing regulations and under Salaries Commission recommendations at exchange rates of $1=1/10d., 1/9d. and 1/6d. respectively :-

PRESENT REGULATIONS.

SALARIES COMMISSION.

DIFFERENCE.

At Exchange 1/10d.

(As in Printed Estimates for

1930).

(Privilege Rate £1= $12. H.C.I..

Allowance of 8% or 16%).

Sterling Salaries

H.C.L. Allowance.

Dollar Salaries

TOTAL

(Revised Estimate at exchange 1/10d.)

$4,613,889 1

420,000 3,897,207

$ 5,562,262

$ 528,373

4,551,768

654,561

$8,931,096

$10,114,030

$1,182,934