CO129-558-3 Levy on Salaries- petition from Chinese Civil Servants 3-1-1936 - 19-12-1936 — Page 274

is

COPY FOR REGISTRATION

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3-JAN 136

Telegram from the Governor of Hong Kong to the Secretar

of State for the Colonies.

Dated 3rd January, 1936. Received 11.41 a.m. 3rd Janua

1936.

---00-----

273

No 1.

Confidential.

-$/53699/35. Your telegram No 236 BUDGETARY position of the Colony

Almexes

(throus?)

JRoded)

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Läigu not

F

lucoded.

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which is receiving earnest attention of myself and my

advisers may be described in rough figures as follows; Estimated deficit 1935 1,000,000 budgeted deficit 1936 3,000,000 to which add in respect of sterling commitments including salaries if the dollar averages 1/3d 3,000,000 from which deduct increase of revonuc from taxes levies

at conventional rate of 1/8d 1,250,000 total threatened deficit there foro is 5,750,000.

Among other measures of retrenchment temporary salary levy as from 1st January seems inevitable and warning circular issued last week.

Following scheme has been based on your despatch of 16th July 1932 Circular.

x

Sterling

Part 1 Temporary salaries No levy on salaries not exceed

-ing £240 per annun On salaries above that figure 21% on the first 240 5% on the next 360 7% on the next 400 10% on the next 400 and 12% on the remaining portion of salary

*

above 1,400 £ per annum resultant savings at 1/3d to the dollar 310,000 Dollars (Hong Kong).

Fart 2 Dollar salaries under £240 per annum exempt

Above that figure 4% on the first 1,000 8% on the next 1,500 12% on the next 2,500 and 15% on the remaining portion of salary above Dollars (Hong Kong) 5,000 per annum but from 1st July these percentages should be reduced to 3% 6% 10% and 12. respectively because by that time

rise in cost of living conséquent upon fall in exchange may be expected Resultant savings Dollars (Hong Kong)

212,000.