53832/1/47
Code
OUTWARD TELEGRAM
!
TO HONG KONG (0.A.G,)
FROM S. OF S.. COLONIES.
Sent 5th June, 1947,
12.00 hrs.
No. 896 Confidential,
Your telegram No. 725.
49.8
(a)
Cost of living allowance and (b) pay thoreass9.
1.
I sympathise with the difficulties with whion officers are faced in view of the high cost of living and regret the delay in replying to your talegram but in considering your proposals I have found some difficulty in obtaining a clear picture of the problem regarding these various increases which appear to overlap to some extent.
2.
Your telegrams Nos. 1365 and 1429 of 1946 referred to additional pay allowances to certain grades including clerical and accounting staff and a statement giving details was promised, but this has not yet been received. In addition to these pay allowances, cost of living allowances are also payable in accordance with the scheme referred to in your savingram No. 2525/45 of 1946, It was hoped that these two types of allowances would meet all reasonable needs of officers for the time being. It appears however that an increase in the cost of living allowance by 50% is now considered necessary which increase will be paid to all lower grade officials including those who have already received additional pay allow arices and those who you how propose should receive similar allowances. This appears to involve certain grades receiving increases under both heads and I should be grateful for a fuller explanation of the need for this.
3
As regards the proposed increased cost of living allowance I am not aware whether there has been any incre a se in the cost of living in Hong Kong in the last year and it would be of help in considering this matter to know what was the cost of living figure in, say, May, 1946, and at present as compared with 1941,
4c
It would be appreciated if you could give me some indication as to the extent to which any resignations have in fact taken place on account of the greater attraction9 of commercial employment giving numbers and grades.
5a It is possible that officials have to some extent been able to meet the increased cost of living from lump gume received in respect of the period of Japanese occupation: which have by now been exhausted, You do not mention this point but you may be able in your reply to give certain information regarding this aspect of the problem,
16.
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