why Slail here
34
32.
9
officer in Hong Kong in respect of deductions from salary for ront of quarters are considerably greater than those of the officer of equivalent seniority in Singapore. This disparity in the percentage deductions, amounting to an average of from 7 to 9% of basic salary, does not appear to be related to any difference in the quality of the accommodation available, Our calculations on the subject aru tabulated in Appendix D of this Report. The importance of the bearing of this factor in the consideration of our conclusions as to the aproximate relationship of the cost of living in the two Colonies needs no emphasis.
(vi) We do not pretend that this comparison is by any means exhaustivo, and we appreciate that this evidence cannot be regarded as establishing conclusively that the cost of living in the two Colonies is the same for everyone; but for the present purposes, on this evidence, we feel justified in acting on the supposition that there is no substantial difference in the cost of living in the two Colonies necessitating any difference in the rate of cost of living allowances, since these are only an approximation to a recompense for a proportion of the increase in the cost of living in any circumstances.
+
We therefore recommend that the same rates of cost of living allowance as in Singapore be paid to all officers on salaries of $1,400 per monson and over.
33.
(iii) Recommendation.
In respect of the second of our terms of reference we accord- ingly recommend
34.
"that the rates of cost of living allowance be revised
to accord with the rates as set forth in Appendix B to this Report."
F.
Recommendations so to future methods of revision of the cost of living allowances,
The conclusions reached at the meeting on the 2nd July, 1948, with Frofessor Bonham, which are set forth in paragraph 10 of this Report, are endorsed by us, and we accordingly contemplate the use of a Retail Price Index Figure calculated on a base of 100 for March, 1948, as one of the guides in assessing the need for variations in the revised scale of allowances recommended above.
35.
A Retail Price Index Figure calculated on a base of 100 for March 1947 has shown but li tle variation over the past fifteen months, since, as stated in paragraph 25 above, such an Index is less sensitive to changes in particular prices than the present Food and Fuel Index.
36.
Bearing in mind points 5, 7 and 8 agreed upon with Professor Benham, and, above all, the desirability of stability in money income (point 7), we accordingly recommend
"that no change in the revised rates of allowances
now recommended be made until a change of 10 points, upward or downward, sh 11 have taken place in the Retail Price Index Figuro es calculated for the 1st October, 1948, on the base of 100 for March, 1948; and
"that for every 10 points change in this Retail Price
Index Figure, upward or downward, the revised rates of cost of living allowance now recommended shall be