CO129-599-1 Salaries Commission 8-12-1947 - 22-12-1947 — Page 366

of the Commission's report will be subject to periodical review, so that if the facts warrant it, a reduction would be made after the first review, which should not be later than 1st July, 1948. I consider that reviews should be made quarterly thereafter until suitable permanent machinery is set up. This should be done at earliest possible date. If you consider it desirable to do so you will no doubt insert a warning on this point in the announcement.

Expatriation pay is prima facie a matter in which uniformity should be secured as far as possible between the several Far Eastern territories, since it represents basically the inducement necessary te attract officers from outside. I appreciate that political implications need to be taken into account and I note that difference between actual rates proposed by the two Commissions is not substantial, but I nevertheless wish to give further consideration from aspect of general principle.

5. You will see that proposed announcement includes reference to early publication of report. This seems to me desirable to forestall inevitable enquiries, and indeed it would be difficult to justify further delay. I am telegraphing to you separately regarding publication with reference to your confidential despatch No. 266.

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6. As regards retrospective application, I understand that when recommending 1st January Commission was aware of assurances mentioned in paragraph 16 of your confidential despatch No. 215, though not of their precise terms. I feel, however that in present financial circumstances of Hong Kong the earlier date you urge, namely 1st October, 1946, could not be justified even on grounds put forward in your despatch, It is also pointed out that 1st October, 1946, would not in any case meet the assurance given to the Fire Brigade floating staff which seems to have promised unconditionally retrospective application to 23rd July. In these circumstances I consider that date recommended by Commission, namely 1st January, 1947,

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