INWARD TELEGRAM

TO THE SECRETARY OF STATE FOR THE COLONIES

Cypher (O.T.P.)

FROM HONG KONG (Sir A. Grantham)

D. 22nd March, 1948, R. 22nd

16.40 hrs.

IMMEDIATE

Bagi memang banguę i den sagtighed Down

$

179

237

"spot

(195)

+ c.ola?

No. 330 Becret

Your telegram No. 354.

(231)

Cost of Living Allowances.

Following personal for Scel.

Begins.

I understand from press reports that both Singapore Government and Federation of Malaya have rejected Trusted Commission's recommendations in respect of cost of living allowances. If this correct I do not think that it would be reasonable to expect Hong Hong officers to wait until revised kaleyan rates aro settled before decision can be given zegarding Hong Kong cost of living. Until joint consultations have taken place between Hong Kong Board of Review and Committee accurate and detailed comparison of Hong Kong and Malayan cost of living is in@ossible, but I would like to stresa point that rents charged for Government quarters in Hong Kong are at least three time those recommended for Malaya. This factor alone means that Rong Kong scale of allowances could never be the same as Melayan scale even if cost of living in both Territories were identical, I urge therefore that Hong Kong case be dealt with now and on its own merits and that attempt to find a common yardstick be left to the joint machinery at time of review.

2.

Although Army officers enjoy all the benefits in kind enumerated in paragraph 1 of my telegram No. 87, I understand that as from 1st February, 1948, local overseas allowance for married army officers in Hong Kong is as follows:-

Rank

General Officer

Brigadier

Colonels and Lt. Cols. Majors, Captains,

Lieutenants

Unaccommodated rate in H.K.dollars

per mengem

851.66 £637 pin

815.66

778.66

742.16 55A

Accommodated rate in H.K. dollars per

mensem

650

7472

559.66

559.66

523.16 £39.

I note principle of tapering off higher salaries is not (repeat not) adopted by the War Office.

3+ . In view of these figures, rates originally proposed (corrupt group) Commission are very modest, but sinie rate of expatriate pay on higher salaries now approved

/are

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