CO129-602-3 Cost of living allowance 30-1-1947 - 17-9-1947 — Page 43

53832/1/47

Downing Street,

S.#.1.

18th June, 1947.

41

//

Dear Charles,

I handed you a copy of the Hong Kong telegram No. 988 regarding the proposed increase in the cost of living allowances by 50% (subject to certain tapering off) as from 1st April 1947; and the extension to certain further grades of the temporary pay allowances. You expressed certain doubts about the Governor's proposals when I discussed them with you on 4th June, as a result of which we asked the Governor in our telegram No. 896 to clarify the points about which the doubts existed. I think you will agree that the Officer Administering the Government has made out a case which fully justifies the need for the increase. We are perturbed by the situation referred to in paragraph 2 of Hong Kong telegram No. 988 and we should accordingly be glad if you could let me know (by telephone if possible) that the Treasury not agree that the Governor's proposals in his telegram 6. 725 may now be approved.

S.T. Charles, Esq.

Yours sincerely,

(SD.) H. PALMER.