51
CUPY
Ref: 54/6/9/48.
Your Excellency,
-
8th July, 1948.
I have the honour to report that I went to Hong Kong on July 1st 4th in order to explore the possibilities of achieving co-ordination between Malaya and Hong Kong, as requested by the Secretary of State, on the principles and methods to be adopted in making periodical reviews of cost-of-living allowances to public servants.
2.
This question was discussed at a meeting of officials and unofficials concerned with it and we reached unanimous agreement on the ten points stated in paragraph 4. The meeting was an informal one and of course its views in no way commit either Your Excellency or the Government of Hong Kong. However, H.E. the Governor of Hong Kong told me there was every probability that the Government of Hong Kong would officially accept all the points agreed upon at this meeting.
3.
The meeting first discussed the present scales of cost-of-living allowances for Hong Kong. A committee is to be set up to review these scales and possibly. to recommend changes. It will report fairly soon. My impression is that it is likely to recommend some increases in allowances, at any rate for the more senior officers, in order to fall more closely into line with remuneration in private employment. If changes are made in the present scales, it is expected that they will be made within the next few weeks. The periodical revisions would apply, in that event, to the revised scales and not to the present scales. I mention this matter only to keep Your Excellency informed on what is happening. The Hong Kong people made it clear that I was invited to attend their discussion of this question only to give my personal views and that officially my only concern, as representing Malaya, was with the principles and methods of making the periodical revisions.
4.
The ten points agreed upon, as recorded in Minutes which may be subject to revision, were as follows:-
1.
Review should be made quarterly. This did not necessarily imply that a change in allowances should be made each quarter, A change would be made only if there were evidence of a marked change in the cost-of-living or other relevant factor.
2.
3.
The Committee for Revision would consist, Hong Kong, of a Chairman, and one official and one unofficial.
The first date of review should be 1st October, 1948.
in
4.
5.
Representatives of the service should not be members, but should be able to submit representations to the Committee.
Other factors besides the cost-of-living should be taken into consideration:
(a) The general state of the trade and commerce
of the Colony.
(b) The state of the Government's finances.
(c) Rates of remuneration paid in private
employment.
H.E., the Governor of Singapore,
Government House,
SINGAPORE.