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nevertheless, increases in the cost of living allowances are preferable to a large increase in the basic salaries, at this stage, if the supply position can be anticipated to improve in perhaps twelve months time with a probable reduction in the cost of living. The increases may tend to have an inflationary effect, but on the other hand, the Income Tax Bill which it is anticipated will shortly be enacted, will tend to counteract this. all the circumstances we feel that the Governor's proposals must be approved.
In
The telegram also refers to a proposed extension of the grades who should (reserve the temporary salary increases to which you agreed in your letter of 18th November 1946 (8.52892/06). The cost is estimated at £9,000 per annum and we should be glad of your approval on the same conditions as set out in our telegram No.1279 of 20th November 1946.
The Governor asked for a reply by 30th April but we have told him this was not possible but that we would reply as soon as possible. The proposals have now been considered in the Colonial Office and I should be glad if you could let us have your agreement to them at an early date.
If you wished we are ready to discuss them with you.
Yours sincerely,
(H. PALMER).