CO129-558-3 Levy on Salaries- petition from Chinese Civil Servants 3-1-1936 - 19-12-1936 — Page 213

3.

This system of payment remained in operation throughout the

year 1931 and, in the words of the then Governor, "certainly

saved the Colony some $1,400,000" (Hansard, 1931, p. 190)

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At the end of 1931, following on representations made by

sterling salaried officers, the cut was abolished and it transpired

that the apprehensions which had led to its imposition had been

unfounded, for the Colony's surplus balance had risen from

$9,3 61,679,74 at the end of 1930 to $11,347,629.47 at the end

of 1931 an increase of $1,985,949.73 on the year.

Commenting on the effect of this cut the then Governor said: -

"This is a considerable surrender, and I am inclined to think

it has not been sufficiently appreciated.

In point of fact

it has meant that an officer has been drawing less dollars

than he would have drawn if the rates prior to the Salaries

Commission had remained in force and he had drawn his pay at

the current rate of exchange. This is probably not realised

by most people and could scarcely have been contemplated."

(Hansard, 1931, p.190).

Notwithstanding this official recognition of the fact that

the effect of the cut had been more drastic than had been contem-

plated and notwithstanding the fact that the surplus balance of

the Colony had increased by $1,985,949.73, the amounts of which

the officers of the civil service had been deprived were not re-

stored to them.

The imposition of this unnecessary cut in 1931 left the sterl-

ing salaried officers of the civil service with a sense of insecur..

ity as to their salaries and their disquiet and sense of grievance

were increased when it become apparent that the money which had

been saved at their expense was regarded as a surplus a windfall

available for expenditure upon Public Works Extraordinary, includ-

ing the erection of an exceedingly costly and little-used week-

end bungalow in the New Territories for the Governor.

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4. When introducing the Budget on the 12th September, 1935, the Colonial Secretary stated that it was "the policy of the

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