Mr. Gaminara.
Hong Kong Department.
14
Reference...
Unless I have missed a point somewhere, the question of seconding a Diplomatic Service officer to the Hong Kong Government on Hong Kong Government terms of service is surely a non-starter. Although Hong Kong salaries are about 10% higher (at the maximum of the Grade 5A level £4,470 has been quoted against the current 24,027 for a D.3. officer) and Hong Kong income tax considerably lower, this wo.id not begin to compensate a Diplomatic Service officer for lack of local allowance, indirect representational supplement, Diplomatic Service allowance, entertainment allowance, rent allowance, boarding school and other allowances for children, to say nothing of the complications inherent in preserving superannuation rights. The difference could amount to several thousands of pounds.
2.
Nevertheless, there may be allowances and fringe benefits payable under Hong Kong Government terms of service of which I am not aware. In order to make a meaningful comparison of the financial considerations involved in sending one of our officers on secondment to Hong Kong, we really need details of the emoluments payable under Hong Kong terms to a single officer of the appropriate grade and to a married officer with one child. We would also need to know the amount of Hong Kong income tax that these officers would have to pay on their emoluments.
3.
Although it is a thorny problem, the question of the tax liability of D.S. officers seconded to the Hong Kong Government should not be insuperable. Now that Inland Revenue have agreed to grant unilateral tax relief on the U.K. salaries of these officers, the guide-lines have been established and it should not be too difficult for agreement to be reached on the amo .nt of tax relief to be given, tough I believe Messrs. Elliott and MacLaren have run into difficulties.
4. Despite the political disadvantages and tax complications, I am of the opinion that to get a D.S. officer to go to Hong Kong, it would be necessary to send him on D.S. terms, recovering the cost from the Hong Kong Government. I wonder whether you would very kindly help to confirm r t is, or otherwise, by providing the details of Hong Kong Government emoluments mentioned in paragraph 2 above?
Pandtüümine.
(P.B. Thompson)
Personnel Services Department
14 May 1970.
/ The salary