ENG-1947 — Page 32

allowance being paid as their appropriate allowance. As, in addition, they received a special allowance of between $30 and $50 per month, they were already much better paid than Government employees of similar grades. In spite of every endeavour to clear up the misunderstanding the men went on strike on the 12th November, while negotiations were still in progress. It was soon evident that the strike was not popular. Picketing, although effective for a day or two, quickly died down, and after five days seventy per cent of the old staff had returned to work. To replace those who did not return new staff were taken on. No further trouble has been experienced.

At the close of the year only one serious dispute was outstanding. This concerned the China Motor Bus Company, whose employees, during October, November and the early part of December had been negotiating with the management for the grant of a retiring gratuity on the termination of ten years' service. The original demand was that this should be payable without a minimum age limit. The management, however, insisted that there must be such a limit, and negotiations were still in progress on this point when, on 12th December, the traffic staff went on strike, leaving the maintenance staff still at work. At the end of the year the strike remained unsettled.

Cost of Living.

There has been little material change during 1947 in the cost of living for the wage-earning classes. The cost of staple commodities, in particular that of rice, which had shown a tendency to fall during the last few months of 1946, rose slightly during the latter part of January and in early February, 1947. This was not unexpected since the advent of the Chinese New Year at about this time usually entails a temporary increase. Floods in South China and the mechanics' strike in August were also contributory causes of temporary food cost increases.

The slight increase in the cost of living level in 1947 was partly attributable to the progressive decline in the value of the Chinese National Dollar. A more serious factor was the continued housing shortage. Although rebuilding has made some progress, there are still many bomb-damaged or looted areas which have not yet been rehabilitated. The pressure on the remaining housing space is, in consequence, severe, and rents are many times higher than before the war in spite of legislation designed to prevent undue increases. The exaction of high premiums, though illegal, is also common. For many of the artisan and clerical workers school fees (and equipment) and clothing are proportionately very much bigger items in family budgets than before the war.

The increase in the wages of workers during the year was reflected to a certain extent in the retail prices of commodities generally. At the end of the year the average retail prices of the staple foodstuffs, etc., of the wage-earning classes, as compared with pre-war and with 1946 levels, were as follows:-

18