English Translation

42 - 2 draft of the government decree). Thus, no assumption of the Reich's pay law, but unstable measure. The numerical increase alone cannot have any effect on the Reichs pay, since in the Protectorate there is a relatively low level of the pay and therefore sufficient distance from the Reich pay remains. 3.) Effects on the private sector of the Protectorate. Reply: According to the expert's judgement, such effects are not to be expected, since in the private industry a condition which meets the social requirements is reached in the light of the previous salary and wage improvements. 4.) Reduction of the Matricular Contribution. Response: The matricular contribution of at present 1 billion RM per year corresponds approximately to the deficit in the budget of the Protectorate and is raised by bond. Also the funds for the remuneration improvement of 200 to 250 million RM annually (without self-government associations and municipalities) have to be procured by bonds. According to the opinion of the financial and economic experts, the bond market can bear this additional burden. Therefore, according to the Financial Division, the amount of the capital contribution is not jeopardised.