OUTWARD TELEGRAM
66
Car
12A
FROM THE SECRETARY OF STATE FOR THE COLONIES
duftina
23/48
Cypher (0.7. P.)
X
IMPORTANT
TO HONG KONG (Bir A. Grantham)
Sent 15th March, 1948. 15.30 hrs.
No.35onfidential.
allowance.
Your telegrams 87 and 170. Cost of living
Following personal from Seel.
The rate of allorentoe on salaries above $1.135 is still causing as much dificulty, On such evidence as le available the cost of living in Hong Kong is at least not (ropost not) higher than in Singapore and although we fully appsociate your argumento in favour of accepting Commission's proposals as they eband we still find greatest daft' Loulty in satisfying ourselves that cost of living rates fo: Heng Rong markedly higher then Malayan rates are justified, particularly for officers in higher aulgries. Por thże ZURZON we could not support cost of living allowance on selspies ebove 31.125 por eonun ct rates higher than that already Approved for salary range 2790 to 31,125 per annua - viz, 4646 per mensen (316. 156. 04. per ann).
We had suggested following alternative
Application of 2018, 159, rate to all sniegies aboT? 61.126 per annum accompanied by a very clear warning in officema that they would have to be prepared for & boss:bla redeti n on #lvat perier, and by a clear understanding thet Board of Reviewers, wndel. would work in closest consultation with dalayan Corrodsbee (pee my telegram to sigh Ommmiratonor, Macaya No. 293, repented to you as No. 23) would give daxlest considereul on to the question of tapertg of COAL DE living allowance on mnghor sale ry ranges (ece a telegetin No. 44).
This Jigure of 2018. 158. 04. ie itself homovee open to cashiere by opazioon with Malayan rates for the respon Elves in pacegropl. ahove. Infomation on which comparison is based is sdeditedly partial. On the other haul you will sgrue that once this figure nad been introduced at would be very difficult to get away from it later even if revision of actual cost of living pointed to such reductame
It is likely that differences of view 4# bo Comparative costs between Hong Kong and Malaya WL12 continuo until Hong Kong Board of Reviewars and Halavan Committee haVO carried out their consultation aa proposed. Meanwhile, however, it is necessary so catablish, 12 only temporarily, & faguse At Talch payments may be made to Civil Serwents of the graden affected. The following has been proposed as a way out of this impebas on the assumption that officers who have to find thele own socommodation are put to considerably greeney SzponDe
than
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