16
B
The above is my view as regards relating the proposed increase in cost of living allowances in Hong Kong to the existing allowances in Singapore. There are, of course, other considerations with which Eastern Department is not concerned; for example, whether or not the Governor's argument in support of the increases should be contested on the groundø that the cost of living in Hong Kong is not at the same high level as in Singapore, and Singapore have not so far seen fit to recommend an increase in their allowances; or whether the Service Departments in this country should be consulted because there will be variations in the payment of cost of living
-Gour allowance to local employees doing the same kind of work as, for example, the local employees of the Admiralty working in naval dockyards, who will no doubt also make a wage claim if the Hong Kong proposals are accepted. As regards the first consideration, if it is desired to contest the Governor's arguments on those lines, it would be necessary to refer his proposals to Malaya for their comments.
If the line recommended in my first
paragraph is accepted, it follows that Singapore and the Federation of Malaya must be regarded as free to do as they choose in any recommendations which may come from them in the future with regard to varying the cost of living allowances paid in those territories.
In short, Eastern Department see no objection to the Governor of Hong Kong's proposals being considered without relation to the existing rates of cost of living allowance in the Federation of Malaya and Singapore.
Jllman.
12.1.49.
I appreciate the points made in Mr. King's minute, but I have no doubt at all that we ought to approve the Governor's proposals and approve them quickly by telegraph. We should do so, as he requests in the last paragraph of (21), if possible in time for payments to be made before the 29th - January (I am sure Hong Kong are making administrative arrangements to this end) and at least so that an announcement can be made by the 29th January. And
we should approve them as a whole without modification.
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2. C. S.D. vide A of Mr. King's minute of 10/1 - are prepared to accept this if Eastern: Department think that there will not be any repercussions in Malaya. Eastern Department vide B of Mr. Man's minute of 12/1 see no
objection