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Enclosure 2.
Gentlemen,
63
Colonial Secretary's Office,
Hongkong, 20th. January, C1963,
6358
I am directed to acknowledge your Pott6,08
of November 22nd., (295-M/S.A.J.19) enclosing a letter from
Messrs. Wolfe and Barry on the subject of House Allowances to
the European Staff of the Kowloon-Canton Railway.
2.
I have placed your letter before His Excel-
-lency and he directs me to remind you that the decision arrived
at on this subject was submitted to the Secretary of State who
concurred in the proposals of the Government. The Governor in
his despatch discussed the question as to whether the term
*consolidated allowance" was intended to cover an allowance for
travelling only or whether the term was used to embrace all
fortuitous allowances as would naturally be supposed. He learns
now for the first time (from the 4th. paragraph of the Consult-
-ing Engineers' letter) that it was intended by them to cover
travelling expenses only, and that when they engaged the Railway
Staff they anticipated that they would be allowed "free tempora-
-ry quarters*.
3.
In these circumstances His Excellency is
disposed to concur in the grant of a lodging allowance to those
members of the staff who occupy houses in Kowloon, and to fore-
-go the charge of rent to those who occupy temporary quarters
in the interior, but in the former case he does not consider
that officers who bring out their wives and occupy permanent
well furnished houses can reasonably expect to be recouped for
the whole of their house rent.
4.
I have caused enquiry to be made as to the
rentals at Kowloon, and His Excellency considers from the
information now at his command that a sum of £100 per annum in
the case of the Chief Resident Engineer and of £60 in other
Crown Agents for the Colonies,
cases
LONDO N.