CO129-602-4 Cost of living allowance 27-3-1948 - 11-12-1948 — Page 15

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15

As regards the question of the payment of cost of living allowance to officers on leave there is no justification for paying these high rates in addition to the high rates of Hong Kong salary. The Governor's despatch does not mention this point and it might be assumed that he has accepted the views set out in Nos.13-15. I agree, however, that it is difficult to treat officers in Hong Kong differently from those ir Malaya and as officers on leave are at present receiving some cost of living allowance it would certainly not be possible to withdraw that.

As regards the date of introduction I agree with the Governor that the 1st January, 1949 is suitable.

Mr. Nicholls and Clerical Section should see as well as other branches of C.S.D. and the Crown Agents should be informed in due course.

Je King

10.1.49

I think it

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Sidebotham, so that he may

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I have discussed this matter at some length with Mr. Higham and Mr. Radford. My view, which Mr. Higham shares, is that the time has come to discontinue the requirement that Hong Kong or Malaya should relate the cost of living allowances which are paid in either of those territories with the allowance which is paid in the other. It seems to me that the only test of whether cost of living allowances should be increased or decreased at any given time should be whether the cost of living has increased or decreased in the territory concerned and whether the Government of that territory considers that it is able to afford an increase, if an increase is recommended. This does not, of course, apply to variations in the basic rate of salary or in expatriation pay, both of which are pensionable and any variations in which would result in officers from one or the other territory after retirement being in a better financial position than officers from the other territory. Obviously, members of a unified Colonial Service who reach roughly the same status in different colonies should be in roughly the same financial position after retirement.

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