3.20
staff was bound to have repercussions on the comparable grades of Government employees, for whom (before” the strike) the Comission had recommended no increase in total emoluments, we had received very little detail on the subject from Hong Kong, and paragraph 5 of telegram No.1876 came as rather a shock. The position, however, I think, must be that we cannot maintain the emoluments of Government monthly paid staff below, those of comparable staff in the Naval Dockyard; if we do, we must expect a strike. Our proposed reply to the Governor is based on this view,
3. Paragraph 3 of draft.
As regards the Commission's proposals for high cost of living allowance and the suggestion that the cost of living in Malaya is higher than in Hong Kong, we should not like to be dogmatic one way or the other.
e feel, however, that in the absence of incontrovertible evidence that the cost in Malaya is really higher than in Hong Kong, we should not be justified in insisting on this ground on a reduction of the rates proposed by the Commission, which were put forward after care- ful local enquiry. If we did so insist, we should be in an untenable position when the resignations and atrikes which would be the result occurred, therefore think that the Commission's proposed rates should be accepted (subject to modification in the higher salary range, which you earlier indicated as desirable and which we accept on the ground given in the draft telegram). At the same time we fully agree with you that the high cost of living allowance should be reviewed early, periodically and as efficiently as possible and, as was suggested in our telogram No.762 to Governor-General, Malaya, that action to this end should be concerted between Hong Kong and Malaya.
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