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55832/1/47
IF 16/020
Treasury Reference...
TREASURY CHAMBERS,
GREAT GEORGE STREET
53
LONDON, S.V.1.
2nd June 1947
Dear Palmer,
As I promised at the meeting this morning in Serpell's room, I am sending you a note covering the two questions discussed.
On the recent Cost of Living Allowance increase proposals, you agreed to go back to Hong Long for certain further information which we thought essential. Briefly, I will cover the views that we Cxpressed on these proposals:
According to the meagre information which we have hero, there has been no increase in the C. C. I. in Hong Kong over the last six months. How then does the Governor justify the proposed increases? In this connection, we felt that adequate official cost of living figures for Hong Kong both for 1941 and for suitable points during the last twelve months would be helpful to us.
(ii) We noted that at the time then the temporary
additional allowances vere awarded in October 1946, that these were designed to alleviate hardship anong certain "hite collar"rades whose expenses the cxisting cost of living avards did not "noticeably meet. The recipients of these additional allowances are now a parentiy eligible for awards under the new cost of living proposals and we feel that here, there is a ĉictinct overlap which long long should exylain. Again, it seems that certain grades to who the additional allowances are to be newly extended will also benerit at the same time from the proposed cost of living increase. This is
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