CO129-602-3 Cost of living allowance 30-1-1947 - 17-9-1947 — Page 61

Downing Street,

3. W. 1.

7th May 1947.

59

3

50852/1/47

Dear Serpell,

I enclose a copy of a telegram from Hong Kong asking for increases in the present rates of cost of living allowances by 50% on the lower salaries tapering off on the higher salaries so that the existing allowances are paid on salaries above £640 per annum for an unmarried officer and above £1,251 for an unmarried officer. Unmarri eð officers at present receive 80% of the rate paid to married officers, so that it appears that the proposed rates on salaries of (say) £500 per annum and £1,000 per annum as compared with the existing rates are as follows :-

Unmarried. Married.

2500

Present

Proposed

£140 £144 (a)

£175

£262

10

(a) 80% of present allowance of £180

paid on £640 per annum

£1,000 Present

Proposed

£152 £152

£190

£285

The cost of the increases is heavy (225,000 per annum) but we feel that the situation described in paragraph 2 of the telegram necessitates urgent action. It is admitted that variations in the total remuneration of the staff, based on changes in the cost of living, may tend to aggravate the overall position, if supplies do not increase,

D.R. SARPELL, RSG. 0.B.E.

/nevertheless