CO129-599-1 Salaries Commission 8-12-1947 - 22-12-1947 — Page 168

OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES BEDDED COPY (Mo. 2 corrected)

53723/47-48 rart II

Code

TO HONG KONG (Sir A. grantham)

Seat 27th harch, 1948.

170 2 le

13.45 hrs.

MMEDIATE

# No.402 Confidential.

1.

Your telegram No.30.

Cost of living allowance.

I approve extension of standard rate of cost of living allowance at 425 per mensen (@318.15.0d. per annum), already sanctioned for basic salaries between £750 and £1,125 per annum, to all basic salaries above ŝi,125 per

annum.

2. This approval is subject to clear warning being given that rate will be reviewed by lat July, 1948, and that no (repeat no guarantee can be given that Board of Review will not recommcud introduction of a tapering scale of allowances on salariss above a certain point or complete disappearance of the allowance on higher salary ranges.

3. By approval does not imply acceptence of argument in paragraph 1 of gour telegram that, because rents charged for doverament quartere in Bong Kong are higher than those charged in Malaya, Hong Kong scale of allowances could never be blo sono as Valayan sesis even if cost of living in both bezritories were löontical. Rental charger are fixed on dizierent bacis from cost of living allowance which is Inte vled to cuver temporary costs only.

Deps sont to.-