G.R.

293

th

local overseas allowances accordingly. As the cost of living allowances proposed for the two colonies by the respective Salary Commissions do not reflect this difference I feel some concern. If the Commissions had been able to co-ordinate their consideration in the manner which I had hoped for, I think it possible that there would have been a greater variation between cost of living allowances proposed for the two territories and I myself should have wished to give this point further consideration, had it not been for the urgency of making an announcement in Hong Kong. You will appreciate that, apart from the merits of the case, there may be ambarrassment for U. K. military and civilian personnel- vic-avis, difficulties may arise in making arrangements for U.K. military and civilian personnel who will be called upon to serve in either Malaya or Hong Kong.

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Should the anomaly which appears to exist as between Hong Kong and Malaya be substantiated on further study, I would ask that it should be corrected as soon as possible when the rate of cost of living allowances is reviewed. should be more readily accomplished if there is full consultation and co-operation with Singapore and Malaya in the proposed reviews. One of the first objects of the Boards of Reviewers, when up, will no doubt be to determine at roughly what points the cost of living allowances should disappear."

Yours sincerely,

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