CONFIDENTIAL
Hon Fong.
7th October, 1948.
His Excellency Sir Alexander William (Gorge Hordor Grantham, R.C.M.G., Governor and Commander-in-Chief,
Hong Kong.
Your Excellency,
We, the undersigned, having boon appointed on Your Excellency's direction by the Colonial Secretary in his letter 1/4093/47 of 27th July, 1948, as a committed to ox min: the rates of Cost of Living Allowance payable to members of the Government Service on monthly rates of pay, and to make recommendations in that connection, havo the honour to submit this. our Report.
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A.
Toms of Roforence,
Our terms of reference were na follows;~
To examine the rutes of Cost of Living Allowanco payable at prosent under Secretariai „ärdstrative Circular No.8 on the new saluzios introduced by the Salaries Commission, 1947, and to advise Government as to their suitability as banc rates in which variations would be cufected as a result of quarterly reviews,
To recommend now base rates, if the prosent rates are found to be unsuitable, having regard to:
(a) The report of the joint committee on Cost of
Living Allowances for the Federation of Malays and the Colony of Singaporo duted 14th Ipril, 1948, and
(b) The present rates of rounorubion paid by firms,
both European and Chinese, in Hong Kong.
To advise what amount of variation in the Retail Prico Index should occur before changes are made in the rutus of Cost of Living lowance and what changes should be made in the rates of Coet of Living Allowance as a con- sequence of variations in the Retail Pric. Index.
To advise what, if my, changus should be mudo in the rates of Cost of Living Allowance on 1.10.46 or much carlier date as may be found to be appropriato,
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Dvidenes Recoivod.
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To considered that our first by una bo secure as much relevant data as possible, both rugarding the adequacy of obhorwine of the present allowances, „s prescribed in „drinistro bivo Circular No.8 of 1948, und as to the current rates or remuneration paid by firas in Hong Kong. Through the incdio of Secretariat Routine Circular No.9! of 31st August, 1948, sad s press release in the English and Chinogo languages, ve accordingly invited written or oral ruorusentations from individuels and organizations.
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In order to cxpcdite our work we felt compelled to require that such representations be made within ten days of the publication of these arouncements. 19 letters were received. In addition ve approached directly the Hong Kong Conural Chamber of Commerce, the Chinese Chamber of Connerov and the Imployers' Federation for information as to prosent raton of remuneration paid by firms and for assistance in other aspect of our task.
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