increases in Dockyard wages and (b) that this

relationship will not be altered by Hong Kong

Government without full prior consultation with

Dockyard authorities, I shall be prepared to approve

them. This means that, if the continuance of the

practice of paying rehabilitation allowance to

Government coolies at artisan rate instead of coolie

rate would result in Government coolies receiving

greater total emoluments than Dockyard coolies,

further justification will be needed for this than

the fact that it has hitherto been the practice to

grant this rate, and the present opportunity should

be taken to correct this anomaly. If your new

proposals are agreed to, I consider, subject to any

comments you may have, that effective date should be

same as effective date of increases granted to others

after August strike, Commission's recommendations

being accepted for period between 1 January 1947 and

that date.

-

It

3. Your paragraph 6. Other points regarding

cost of living allowance. I shall be telegraphing

separately about high cost of living allowance.

will suffice here to say that for your immediate

purposes Commission's proposals for high cost of

living allowance, subject to modifications referred

to in paragraph 2 above, have been accepted as they

stand for revised basic salaries up to $1499 per

mensem (approximately £1125 per annum). Above that

point you should not commit yourself until you have

seen my separate telegram referred to above.

4. Your paragraph 8.

Time-scales.

See my

312

confidential savingrám in next air mail which indicates

points regarding basic salaries, in addition to

administrative scale, on which I still have doubts.

I shall be communicating with you shortly in more

detail

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