53723/47-48.
Colonial office,
The Church House,
Great Smith Street,
S. W. 1.
3rd Marco, 2948.
22703
Dear Serpell,
(195) (206)
Will you please refer to Hong Kong telegrams Nos. 87 of 22nd January and 170 of 12th February about high cost of living allowance on basic salaries of $1500 per mensem and above (£1125 per annum and above)?
We have given these careful consideration here and I must say fire that there is weight in the arguments adduced by the Governor against a radical reduction of the rates of cost of living allowance recommended by the Salaries Commission as payable on the higher ranges of basic salaries,
The Governor himself strongly recommends, as a temporary measure until the first review is made, that senior officers should be paid high cost of living allowance at the rates recommended by the Salaries Commission. (These go up to £360 per annum for married men with children on basic saleries of £1500 per annum and above). We ourselves think these rates should be reduced to those already sanctioned for basic salaries between $1000 and $1499 per mensem (viz $425 p.m. or £318.15.0 per annum for married men with children). This would mean that the maximum rates
of high cost of living allowance would be reached at basic salary of £750 p.a., all salaries above that amount carrying the same rates.
D.R. S RPELL, ESQ., O.B.E
I