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Once the £318. 15s figure has been introduced in Hong Kong, as I am sure you will agree, it will be ver difficult to get away from it afterwards. The Governor himself points to the desire of officers to know, in opting for revised terms of service, what cost of living allowance they will actually receive. At the same time we appreciate your own desire to establish, if only temporarily, a figure at which payments may be made to Civil Servants of the grades affected. We have been trying to find a way out of this impasse. We understand that in Hong Kong much of the difficulty may arise from a circumstance not existing to the same extent in Malaya, in that higher-grade Civil Servants are often compelled, owing to the lack of accommodation, to live in hotels. We suggest, therefore, that, for the time being, the cost of living allowances granted should differentiate between two classes of officer. Those for whom accommodation is provided by the Colonial Government, against the usual deduction from salary, will receive a cost of living allowance approximating to that payable in halaya. Where, on the other hand, officers are compelled to find accommodation, e.g. in an hotel, at high cost to them- selves, they shall receive the full £318. 15s per annum [now proposed by you
I realise, of course, that this proposal is rough and ready and, if adopted, would be temporary in effect. The Boards of Review working in concert will no doubt be able to put forward something a good deal better, though I imagine that they may well wish to consider "accommodated" and "unaccommodated" rates for cost of living allowance, In the meantime, our suggestion,if it is based on a correct appreciation of local conditions, may help to meet the present difficulties of the Governor.
Your ever
DBlittlads
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