INWARD TELEGRAM
TO THE SECRETARY OF STATE FOR THE COLONIES
23 JA:
X
HA
XI
COPY FOR ACCIDSFIVED
FROM HONG KONG (Sir A. Grantham)
D. 22nd January, 1948.
Re
22nd
IMMEDIATE
19
13.55 hrs.
XI
1948
II I
Lill
258
STRY
REGIS
IA
IN
195
Code.
No. 87 Confidential.
Addressed to the S. of S.
Repeated by savingram to Governor General, Malaya,
Governor of Singapore. Governor of the Malayan
Union.
(177/181)
Your telegram No.44.
Hong Kong Salaries Commission.
?
High Cost of Living Allowance.
I assume that the War Office data to which you refer consiste inter alia of report of Local Overseas Allowances Sub-committee of the Combined Services in Hong Kong of the 29th July, 1947. Since Army persomel aro charged for electricity and gas at U.L. rates irrespective of local cost, obtain coal at special rates can rent fully furnished married quarters including bedding, curtains, crockery, etc, at 35 shillings por week, are charged 2 shillings per day for a servant when actual cost is 6/8, can obtain clothing and personal necessities from Officers' shop or NAAFI at less than the market price, have free educational facilities for their children and cheap transport, can purchase drink and tobacco from NAAPI, have cheap Services Club and can obtain food from Army rations, it would not surprise me if expenditure of Aray personnel on other items varied betwoon hero and Singapore. I contend, however,
that considerations which may have led the War Office to differentiate between Hong Kong and singapore for subsidising personnel cannot in any way reflect difference in cost of living for un-subsidised civilians in the two places. The exclusion of food alone would invalidate any such conclusion, since at present expenditure on food represents a large proportion of all officers' budgets and is further reflected in domestic servants' wages. Figures quoted in Appendix VIII of Malayan Salaries Commission'a Report for Singapore are extremely scanty, but, where it is possible to make a comparison, prices of iteme likely to be consumed by officers of higher salaries grade appear roughly the same, with equal number of common items higher in ope territory than the other. It la probable that European clothing and many other items are cheaper in Maleya than in Hong Kong since Malaya obtains more imports from the U.I. and Hong Kong consumer goods beve, since the rationing of official exchange, to be purchased from the United States at open market rates. I note also that official Singapore index figure for cost of living of Huropeana in June, 1947, showed an increase on pre war basis of 96% only, wheroas in Hong Kong the increase over pre war, exclusive of rent, was Whilst I sm estimated by Statistice officer at about 20%.
agreeable to joint consultations and co-operation with Singapore and Melaye when review is undertaken, I am of the
/opinion
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