The only new principle introduced by the recent decision is the provision of greater exchange adjustment for heads and deputies than for other "A" Class employees in that the heads of the principal administrative departments have been granted èxchange adjustment on the whole of their salaries in respect of any decline in exchange below 1/2%d. and deputies have been granted similar adjustment in respect of two-thirds of their salaries.
This new feature appears to have created the impression that the salaries of these employees have been increased by 100 per cent. and 668 per cent. respectively, This, of course, is not the case. As has been stated above, there has been no increase in the basic salaries of these employees. On the basis of an exchange of 8d. to, the dollar the maximum increase in pay received by any employee as compared with the pay received in December 1938 is approximately 60 per cent. With every rise in exchange the increase will be less, The Council felt that in order to maintain the standard of its service, and to make it possible to continue to recruit men of the type desired, it was necessary to provide posts carrying salaries which, in terms of foreign currencies, would be comment surate with the salaries paid to municipal officials performing similar work in other large cities of the world. It is considered that the foreign currency equivalents of the Council's salaries are by no means extravagant in comparison with the solanes paid elsewhere to those carrying similar responsibilities or in comparison with the salaries paid by the larger commercial firms in Shanghai.
The distinction made between "A" Class and "B" and "L" Class employees is not a news one. The salaries of "B" Class employees are straight dollar salaries, and the 15 per cent cost of living bonus accorded to them is not intended to bear any relation to foreign currencies. The Council's intention is to review the amount of this bonus periodically in accordance with the cost of living conditions then ruling,
Text read from the printed page and cleaned; old type leaves the occasional error.