1. Admiralty
I think ☺ has been answered elsewhere,
2 114 ZA Hong Kong
tel. 725
tel. 692
Mr.Boss.
30-1-47
2
مسلمات
28-4-47
Fr.Tegetmeier.
I have sent an interim reply to No.2, as it is hardly possible to give a considered reply by 30th April. The present rates of cost of living allowances are set out in the enclosures to No.21 on the 1946 files and are briefly as follows :
£350
440
500
Up to £420 p.a. 50%
11
" £480 p.a. - 40%
#t
35%
тая,
638377/2/44
It
11
•
" £570 p.a =
"
£700 p.a.
= 30%
" £900 p.a. = 25%
=
"£1000 p.a.
20% £1500 p.a. = 10%
Unmarried officers receive 80% of the above rates.
The Governor now proposes that the above rates shall be increased by 50% for single officers up to £500 p.a. and up to £1200 for married officers (with a tapering off at salaries about those limits).
The cost is put at $3,600,000 p.a. or £225,000.
It is unfortunately not a practical proposition for Hong Kong to attempt to hold the cost of living stable by means of subsidies as this would mean still more Chinese flocking into Hong Kong. The only two remedies are (i) increase in available supplies, which is a matter outside the control of Hong Kong and (ii) decreasing the amount of currency in circulation or at least not increasing the amount of money in circulation by raising additional revenue to offset this additional expenditure. The introduction of Income Tax will be a step in this direction.
The Governor also refers to the additional grades which should receive the temporary salary increases which were sanctioned in our telegram No.1279 of 9.11.46 copy attached. Unfortunately the relevant file is in circulation. The amount involved is
= £9,000 p.a.
however comparatively small, $144,000 p.g.
be
I should comments of and C.S. sept.
grateful for
nce Dept-
28.4.47.