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Confidential
Reference...
Mr. Gaminara. (Hong Kong Department)
Mr. Scanlon.
Exchanges of Staff with Hong Kong Government
You will wish to see the results of Personnel Services Department's examination of the question of terms of service. These are not very encouraging. My own view, as one who has been seconded to the Hong Kong Government (on DS terms, though the tax position is still not satisfactorily resolved) is that the only way to deal with the thorny problems involved is for DS officers to be seconded on DS terms and Hong Kong officers on Hong Kong terms and for there to be some kind of cost sharing arrangement so that neither HMG nor the Hong Kong Government was out of pocket. But it is clear from Mr. Thompson's minute of 22 July that CSD authority would have to be obtained and that this would not be easy to come by.
Reagen
(R.J.T. McLaren)
29 July, 1970.
Personnel Operations Department
Pending receipt of the views of the Governor of Hong Kong on the level of the proposed exchange, a comparison of salary and allowances of a D.S. Grade 5A officer and a Hong Kong Senior Administrative Officer (both at top of scale) has been made.
2.
It seems possible that the tables setting out emoluments and tax behind Mr. Thompson's minute of 22 July may require amendment since in tables 2 and 3 tax has not been deducted in respect of the rental value of accommodation which is assessed at 71% of the "income from the office or employment". Also the maximum tax that can be charged is 15% the Standard Rate, on the gross salary. Furthermore in table 3 a deduction of 31% has been made from the This officer's pay for superannuation contribution. contribution is not levied on the officer who has, however, to pay a minimum of 4% of his salary as a contribution to the Widows and Orphans Pension Fund.
3. On the basis of these changes, I compute the take home pay in Hong Kong to compare as follows:-
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