CO129-602-3 Cost of living allowance 30-1-1947 - 17-9-1947 — Page 39

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Treasury Reference.

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TREASURY CHAMBERS,

GREAT GEORGE STREET,

LONDON, S.W.1.

23rd June, 1947

Dear Palmer,

(11) Thank you for your letter of 18th June regarding Hong Kong (9)telegram No. 988.

We have now considered the situation here and can agree to

(2) the proposals made by the Governor in his Telegram No. 725 of

24th April for certain increases in C.L.A. for lower and middle white collar workers and for extension in deserving cases of the temporary additional allowances first awarded last October.

We trust that with these new concessions the Governor will find it possible to maintain the status quo of existing salary and allowance levels in the public services until the Salaries Commission has been able to investigate the whole field and present overall recommendations. I need not perhaps remind you of the views we expressed at our meeting here on 2nd June, that we thought it an impossible aim for the local Government to hope to compete with commercial rates of remuneration and that the pay of the government services would generally speaking compare unfavourably with that paid to employees by the most important private firms.

Yours sincerely,

H. Palmer, Esq.,

Colonial Office.

S.7. Charles.