23JUNSU
COL. OFFIOS
75.
13.
84
TELEGRAM from the Governor of Hong Kong to the Secretary of
Stete for the Colonies.
Dated 21st June.
(Received, Colonial Office, 10.35 a.m.k 21st June, 1930).
No.55. Confidential. Your telegram 26th May No.18. (8
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Salaries Commission. Resolution passed in Legislative Council on 19th June voted 1,628,917 dollars in respect of the current year in addition to sum already provided in Estimates to give effect as from 1st January 1930 to Salaries Report as further modified in two points mentioned below.
Chow and Lauder being members of the Commission abstained from voting: other unofficials opposed/some favoured revision of salaries but considered it inexpedient at the present time owing to the effect of the low dollar. Modifications accepted by Government are first conversion of revised sterling salaries being at current rate of exchange fall in value of the dollar resulting in increase in dollars recuivad bysterling officers, increase being at present only partially reflected by rise in local cost of Miving. At prevailing exchange rate sterling salaries are therefore considered adequate without any high cost of living allowances and Government agree to hold allowances in abeyance for further consideration. Saving estimated at 665,600 dollars. It will probably be necessary to adopt a graduated scale of allowances if the dollar recovers or local cost of living rises apreciably but it is important in the meantime that no definite rabes on allowances should be mentioned in recruiting new staff.
Second modification consists of the retention of ten years service qualification for rent allowance of local dollar-paid officers above lowest grade abolition of which was recommended in paragraph
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