CO129-602-4 Cost of living allowance 27-3-1948 - 11-12-1948 — Page 19

Sec.1/4093/47. NFIDENTIAL

No. 300.

2

19 21

GOVERNMENT HOUSE,

HONG KONG.

1 December, 1948.

Sir,

I have the honour to invite reference to paragraph 178 of the Salaries Commission Report in which it was recommended that the temporary cost of living allowances recommended by the Salaries Commission should serve as a temporary measure until a further survey of the cost of living could be made. For reasons set out in (2) my telegram 575 of the 16th June, 1948, you agreed, in (3), your telegram 696 of the 21st June, 1948, to postpone the

Enclosure 1.

Enclosure 2.

"first review of the cost of living allowances until the

1st October.

2.

I now request your approval to adopt from 1st January, 1949, the new standard cost of living allowances shown in column 3 of the first enclosure to this despatch.

3.

A committee was appointed under the Chairmanship of the Honourable Sir Man-kam Lo, Kt., C.B.E., to examine the existing cost of living allowances payable to monthly-paid officers and to make recommendations regarding their suitability. The committee submitted its report, a copy of which is enclosed, on the 7th October, 1948.

4.

Both the Hong Kong General Chamber of Commerce and the Employers' Federation of Hong Kong made representations to the Government, when the appointment of the committee was announced, that they should be consulted before any final decision on the allowances was made because of the effect not only on monthly-paid staff but also on daily-paid labour employed by commercial firms. Since the report of the committee was submitted, have taken place with these two organisations and they have expressed general agreement with the proposals which I have adopted in this despatch.

discussions

The comparative table at enclosure 1 can be best considered in four parts :-

5.

(a)

(b)

the coolie, semi-skilled, and junior artisan class, receiving basic monthly salaries of less than $150;

the larger proportion of the white-collar worker and the senior artisan receiving basic monthly salaries of between $150 and $350;

THE RIGHT HONOURABLE

ARTHUR CREECH-JONES, M.P.,