CO129-602-4 Cost of living allowance 27-3-1948 - 11-12-1948 — Page 61

Secretariat file No. 1/4093/47.

GOVERNMENT HOUSE,

HONG KONG,

12th August, 1948.

59

Encl. 1

Encl. 2

Encl. 3

sir,

I have the honour to refer to the recent visit to Hong Kong of Professor F. Benham, C.B.E., in connection with a review of Cost of Living Allowances in Hong Kong, Halaya and Singapore, and to the letter (reference 54/6/9/48) of 8th May, 1948, addressed to Your Excellency by Professor Benham, a copy of which I have received.

2.

I enclose for your information a copy of a note of the matters discussed at the informal meeting in Hong Kong with Professor Benham. The points agreed are the same as those recommended in Professor Benham's letter to youlo The general principles therein set out have been accepted here and a special committee has been set up under the chairmanship of an unofficial member of Executive and Legislative Councils, Sir Man-kan Lo, C.B.E. with Professor R. Robertson, M.A., of the University of Hong Kong, the Statistical Officer, a representative of the Labour Office, and an Assistant Financial Secretary as members. The terms of reference of this committee are set out in enclosure 2 to this despatch. A copy of the circular containing current rates of Cost of Living Allowance is attached as enclosure 3.

3.

This committee is larger than that contemplated for normal quarterly reviews since it is charged particularly with advising whether the existing rates are suitable as base rates on which to effect future variations. It is not proposed to appoint a further committee to conduct the review due to take effect on or before 1.10.48 and the special committee is also charged with this task. The committee is asked to advise whether changes, if any, are required before 1.10.48 because the Secretary of State in giving permission for postponing the review which was due to take place before 1.7.48, expressed the hope that the review should take effect before 1.10.48 if possible.

I have the honour to be,

Sir,

Your most obedient servant,

A. G. GRANTHAM

GOVERNOR.

(1) His Excellency

(2)

The Officer Administering the Government,

Federation of Malaya,

KUALA LUMPUR.

c.c. The Commissioner General, Singapore.

His Excellency

Sir Franklin Gimson, K.C.M.G.,

Governor of Singapore,

SINGAPORE.