CO129-596-4 Hong Kong University- Apprenticeship scheme 4-2-1947 - 3-9-1947 — Page 3

3

We should

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Mr Keith slated

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should be such as

just about £67 per month or £800 per annum for the five of them together. The only other items are:- (1) passages; (2) initial outfit allowance, £25 each (your minute of 9.5.46) (£35 is now the normal figure) and (3) two small payments covering sick leave, e tc. (your marginal comment on my inute of 8.8.46. refers).

In view of your minute of 9.5.46. I presume that both batches of students will be here for two yea. The figure of £800 p.a. above is of course only a very rough guide to what the second batch will cost.

As the second batch are being brought under a C.D. & W. scheme to which the normal C.D.W. scholarship terms will not apply, could we in the interim application define the exact basis on which we would propose to pay them? I take it the general basis would be as in

•

26 on the 1946 file, as modified by A of your minute of

Can we get it agreed that bringing their incomes up to £30 p.m. means their actual net incomes, so that we can pay them at the full rate between arrival and start of employment, and make up losses due to sickness, closure of works and a given period of personal holidays?

There is also the more delicate question of making up income tax deductions. Pace Mr. Mayle's minute of 5.9.46, the supplementary allowances which we issue are not subject to I/Tax; and if we do not make up such deductions, the student who gets a higher salary and is liable to income tax is penalised as compared with the one who is not.

This income tax question is about to rear its head again in connection with the first batch of students. Shortly after my minute of 22.7.46. I thought this had been happily settled, because I heard in all cases that deductions had been refunded or were not being

CA. to Sleepler's made. But now CHAN claims that deductions are being

bring there's income from

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made, and I have just heard that CHONG is getting an increase of salary which makes him liable to tax. In this case, unless we make up the deductions, an increase in salary will actually result in a decrease in total emolaments, as we shall merely have to reduce the supplementary allowance by the gross amount of the increase of salary. I am checking up on these cases before pursuing the matter in connection with the first

E. R. Hammer.

10/3

It provisos batch.

all Source un 15 £280 is how on ₤255 This was pusto A low. of Hik despatch No 266

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mper 194 10 20. A tax deductive Sho certain')

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go F.B.I. sludder's

below this figure.

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Miss Ruston, Miss Beaton.

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I submit a draft appliction and covering letter for an interim grant from C.D.& W. funds for the second batch of 5 F.B.I. students. Mr. Hammer tells me that £240 is usually allowed for each student for his passage (£120 each way) and that as £35 is now the normal figure for an outfit allowance we should allow this. He has suggested £1,000 as the total of the interim grant. have brought in the 2 points at X/ of Mr. Hammer's minute in para. 5 of the application (vide insertion) and drawn Mr. Serpell's attention to them in the covering letter.

Would Miss Beaton please number the scheme at the top and in para. 6 of the "Financial Summary"?

I

D. B. Whyte.

12/3.