53832/1/47 H.K.
The Church House,
620.
Great Smith Street,
S.7.1.
17th September, 1947.
I am replying, in the absence of Creech Jones, who is in the est Indies, to your note enclosing a letter regarding the high cost of living in Hong Kong, from .A.C. Millington, which I return herewith.
Mr. Millington refers to the fact that it 18 estimated that it costs at least three times as much to maintain a standard of living consider bly lower than that normal in 1941, whereas the salaries of Government officials have been increased by means of a cost of living bonus by 60 to 75 per cent.
It is of course a co mon experience these days for persons who are aid on a salary basis, that even with the increases which have been granted to them, it is necessary to maintain a lower standard of living than they enjoyed before the war. This situation applies in this country, as well as in Hong Kong, although acuittedly to a lesser extent. On the other hand taxation in this country is at a for higher level than in Hong Konɛ.
There is a great deal of business prosperity in Hong Kong at the present time and, again as in this country, this results in the business community being able to offer for higher salaries and wage s than Goverment is able to afford. On the other hand, it must be re-entered that in times of business depression it is the Government servant who tends to be in a more favourable position than a person de endant for his income on business activities.
J.R. Thomas, AB).
›
M.P.
/I
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