53632/1/48
Code
OUTWARD TELEGRAM
TO HONG KONG (Sir A. Grantham)
FROM 2. OF S., COLONIES.
Sent 22nd August, 1948. 17.30 hre,
Confidential No. 908
SLADKAMPEÓNAR EFNA VÝME
Addressed to Governor, Hong Kong.
Reposted
*#
" O.A.G..
Singapore, No. 896. Federation of Malaya,
No.1053.
60
13/15
Your telegram No. 676 Confidential.
High Cost of Living Allowances,
Before salaries were revised to post-war level it was the general practice of Colonial Governments to pay cost of living allowances to officers on leave outside the Colony because in most cases the increase in the cost of living in the Colony was in line with that of this country where most officers spent their leave. The Palestine Government was an exception to that general rule and paid only half rates of allowancen to officers on leave because the full rates wore exceptionally high owing to the high cost of living in the territory. When cost of living allowances were introduced in Malaya before salaries were revised the Palestine practice was followed for the same reason and half rates only wore paid to officers on leave,
As a general rule when salaries were revised in other Colonies the cost of living element was included in the revised rates of salaries and cost of living allowances disappeared. The Palestine Government continued to pay half rates of allowances to officers on leave after sularies were revised.
I was advised that the Report of the Joint Committee en Cost of Living Allowances in Malaya contained agreed recommendatione arrived at with difficulty and that it represented compromises accepted after delicate negotiation by representatives of the Government, unofficials and Public Services and that if any material alterations were proposed the based of agreement would be lost, The Committee Tized rates of allowances on the assumption that payment would he made to officers on leave and in order not to upset the balance of agreement and so prejudice the acceptance by the Committee of proposals concerning other major issues, the recommendations of the Report were in the main approved, including the payment of full cost of living allowances to officere on leave,
/Hong Kong