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(a) there have been variations in rehabilitation allowances in accordance with fluctuation in cost of living followed by recent increase of 1 dollar (Hong Kong) per day see my telegram No. 296) latter alone represents increase in expenditure of £1,000 per day.
(b) slow progress made in repairing Government quarters due to lack of material and consequent prospects of heavy expenditure on continuing accommodation for Government officials in hotels.
(c) Arrears of claims from the Foreign Office of £550,000 (sterling) mentioned in your telegram under reference in respect of refugees,
(a) Number of officers and other ranks retained after changeover to Civil Government greater than àriginally expected.
(e) New cost of living allowance for which your sanotion has been sought.
(f) Necessity of paying operating costs of Electricity Companies longer than was anticipated.
(g) Possible reinstatement of funds in custody of Treasury confiscated by the Japanese (my telegram No.290).
(h) Pre-occupation claims which still being
received.
40 Allowing for above factors, and as result of further review of cost of allowances, it has become necessary to increase personal emoluments figure to 22 million plus 17 million for allowances, total 39 million dollars (B). There are still a number of unknown factors such as polies position, retirements, doubling of posts, which make accurate estimating extraodinarily difficult. Revised figures for other charges 58 million plus 8,800,000 to cover Foreign office claims in respect of relief for refugees and 1,200,000 to cover cost of accommodation of officials in hotels, total 68% million. Revised revenue figures for 11 months excluding any possible receipts under War Revenue Ordinance 45 million. Deficit or 621 million say 83,910,000 (sterling).
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