inducement to qualified officers from overseas when suitable local officers of required qualifications are not available,

The earnings of daily paid workers throughout the Colony have been increased since the Commission submitted its Report, and this Government has proposed a modification of the emoluments originally recommended by the Commission for lower grade monthly paid staff, in order to reflect these changes. This modification is now under consideration by the Secretary of State, The Secretary of State has agreed that, subject to

3.05

a decision on this proposed modification, the Commission's proposals for temporary high cost of living allowance are acceptable to him as they stand for revised basis of salaries up to dollars Hong Kong 1,499 per mensem, He is giving further consideration to the rates applicable to ssiaries above that figure, It is emphasised that the high cost of living allowance is of a temporary nature and will be subject to periodical review so that the rates may be revised in the light of circumstances and the allowance discontinued as soon as the facts warrant. The first review will be made not later than 1st July, 1948, and thereafter at quarterly intervals until suitable permanent machinery for adjustment can be set up.

The Secretary of State has agreed that the Commission's recommendations relating to salaries and allowances, as finally approved, shall be effective as from 1st January 1947, the date recommended by the Commission.

It will be appreciated that some delay in implementing the Commission's proposals is inevitable in order to allow time for new salaries to be calculated and for necessary administrative and accounts arrangements to be made, but every endeavour will be made to expedite transition from old scale to new and payment of arrears, It is hoped to begin payment of arrears by.

Ends.

Coples sent

Treasury

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Mr. D.R. Serpell, 0.B.E, Mr. H.R. Apperley,

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