CO129-533-13 Salaries- conversion rate of sterling 30-1-1931 - 21-1-1932 — Page 43

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Should the

Military Contribution and Public Works Extraordinary) 54.28 per

cent., or $13,809,382, is for personal emolument.

average exchange rate of the dollar be 1/- or under (the basis

on which these figures are calculated) official salaries, as

the Hon. Mr. C. Gordon Mackie pointed out during the second

reading of the Budget, will involve an additional tax on the

resources of the Colony of approximately one million dollars.

The community considers that, in a existing

economic conditions, the ability of the Colony to bear fresh

taxation has reached its limits. That view was expressed both

by the Senior Unofficial Member, Sir Shou Sou-chow, and also

by his colleague Mr. R.H. Kotewell, who added that the Chinese

regarded recent increases in taxation with concern and

apprehension.

Moreover, at a time when the National Government, with

the full force of public opinion behind it, is curtailing all

unnecessary expenditure, the Colony's community is extremely

critical of what it regards as ill-timed generosity on the

part of the Hongkong Government towards its employees.

It

points out that, on the recommendations of the Salaries Com-

mission, official salaries were recently increased by 15 per

cent.; that the cost of living in Hongkong has not gone up to

the same extent as the exchange has fallen, and that payment of

salaries at current rates will result in Hongkong Government

Servants finding themselves better off than they have ever been

before, just when, as Mr. C. Gordon Mackie stated, "Government

Servants at Home, in Oeylon, the Straits and other places have

all had their salaries cut".

Employees of leading firms in Hongkong have been

called upon to accept drastic sacrifices. Prior to the second

reading of the Budget, H.E. the Governor was supplied con-

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