CO129-558-3 Levy on Salaries- petition from Chinese Civil Servants 3-1-1936 - 19-12-1936 — Page 29

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equitably worked out as far as is possible in

the circumstances.

As regards the dollar salaries,

the heavier cut and the lower exemption limit

are justified on the ground that dollar salaries were increased by 20 per cent. as a result of the findings of the Salaries Commission as

against 15 per cent. basic increase in the case

of sterling salaries. I am not sure whether

this argument could not be criticized on the

grounds that the 1929 increase was due to the fact that dollar salaries had previously been too low as compared with sterling salaries; but fortunately the necessity for meeting this

criticism has not as yet arisen.

Owing to the anticipated gradual rise in the cost of living, the rate of levy will decrease after the 30th June, 1936.

In this memorandum Mr. Tratman

emphasized the importance for the welfare of

the Colonial finances in 1937 of being able to utilize to the full the various potential

assets represented by the gaol and hospital

sites, the Naval Arsenal yard, and the Kowloon Tsai Development Scheme.

With reference to the question of the Salaries Commission Report, it is pointed out that the 15 per cent. basic increase therein

recommended would result, when the dollar fell

below is. 8d.in an actual increase in the number of dollars paid to sterling paid officers as compared with the pre-1929 rates; a consideration which in justice goes far to mitigate the

severity of the cut.

No. 17.