CO129-602-4 Cost of living allowance 27-3-1948 - 11-12-1948 — Page 83

Code

81

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INWARD TELEGRAM

TO THE SECRETARY OF STATE FOR THE COLONIES

rew REGITRATIO

FROM HONG KONG (Sir A. Grantham)

D. 16th June, 1948. R. 16th

#7

*

08,00 hrs,

No. 575 Confidential,

Addressed to S. of S. Repeated

SFINES

RECEIVED

18 JUN 1948 C.C. REGY

to Commissioner-General Singapore, No. 22-

Your confidential telegram No. 402. (1).

Cost of Living Allowance.

I have discussed the question of reviewing and setting up of machinery with Macdonald, Work has been proceeding in the collection of data for a review in Hong Kong and certain tentative proposals for the machinery were suggested to Malaya, but owing to the fact that the Committee under Benham in Malaya has been reviewing their rates, final arrangements have not been made. I have arranged with Macdonald for a suitable officer from Malaya to vieit Hong Kong in the near future, to discuss the problem of liaison and methods to be used for periodic review,

2. I consider it is essential to postpone review scheduled for 1st July for the following reasons:

(a) Statistics and other material necessary for satiafactory review of C.L.A. are not yet complete.

(b) So far, indicetions are that cost of living is rising and a review at present would probably result in premature increase before a tenable basis for periodic reviews has been established.

(c) Present rates, resulting from Salaries Commission's recommendations, are admittedly tentative and it is essential to assess a satisfactory basic rate to be used for starting point for periodic review. I propose referring this problem to a Special Committee for advice.

(a) I wish to consult the Waleyan officer before setting up machinery for review.

I recommend, therefore, that the review of Hong Kong rates should be postponed for 3 months. I would propose also to inform the Public Service in this sense, giving reasons necessitating postponement. The Service is somewhat inclined to anticipate an upward review la July and an announcement on the above lines will reassure them.

Copy sent to:-

Treasury

Mr. I.P. Bancroft.