14
If in all the circumstances the Hong Kong Department feel that the proposals ought to be approved and Eastern Department think that there will not be any repercussions in Malaya, C.S.D. would, of course, not wish to raise any objection.
A table below shows how the proposals now submitted compare with the rates of cost of living allowances payable in Singapore on salaries of £600 per annum and upwards. The rates in Malaya are £60 - £70 per annum lower. I have converted the figures into pounds sterling as it makes the comparison easier:-
Married
&
Larried
Single
Children &
£600
Hong Kong
£427
£352
£256
Malaya
£360
£360
£270
£675
Hong Kong
£457
£366
£274
Malaya
£404
£404
£289
£750
Hong Kong
£487
£390
£292
Malaya
£445
£445
£280
£825
Hong Kong
£506
£404
£303
Malaya
£482
£482
£280
£900
Hong hong
£525
£420
£315
Malaya
£520
£490
£280
£975
Hong Kong
£543
£434
£325
Malaya
£557
£490
£280
£1050 Hong Kong
£562
£450
£337
Malaya
£595
£490
£280
£1125
Hong Kong
£556
£445
£334
Malaya
£595
£490
£280
£1200
Hong Kong
£600
£480
£360
&
Malaya
£595
£4.90
£280
upwards
X
02
$370
It will be seen that on salaries up to slightly over £900 per annum (basic) the married man with children in Hong Kong has an advantage over his counterpart in Malaya. Thereafter the Malayan officer gains the advantage until £1200 per annum is reached when the Hong Kong officer is again slightly better off I do not think that these differences are in themselves of sufficient importance to worry about. In Malaya the married officer without children is at an advantage through the whole range of salaries covered. In Hong Kong, however, the single officer is at an advantage after passing the £675 and at £1200 onwards the difference is as much as £80 per annum. It seems to me that this cannot be justified and I suggest that for single officers in Hong Kong there should be a ceiling of £360% per month. Referring to enclosure (1) of the Governor's despatch it is not clear what rates of cost of living allowance are intended for the intermediate points in the scale not mentioned in the table. For example, the cost of living allowance proposed for a salary of 800% is 570%. I assume that the same rate will apply until the 900% mark is reached when it will rise to 6108. This particular point is not clear but it will no doubt be clarified in the tables setting out the new rates which will be eventually prepared.
/AS