GR 200
IMMEDIATE
CYRWER CAT A
FM F C O 201025Z
CONFIDENTIAL
STAFF IN CONFIDENCE
CONFIDENTIAL
Bu maddy 12 2h
HKK 382/15
RECEIVŁO ́! REGIGURY NO.
2 1 OCT 1977
DESK OFFICER
INDEX
PA
51
REGISTRY
Action Taken
3
TO IMMEDIATE HONG KONG TELNO 799 OF 20 OCTOBER
PERSONAL FOR GOVERNOR FROM UNWIN, PPD. YOUR TEL 1027 OF 13 OCTOBER: COMMISSIONER OF POLICE FOR RHODESIA.
1. WE HAVE BEEN SEARCHING FOR A WAY OF MEETING HENRY'S ASSUMPTION
THAT HIS NET EMOLUMENTS WILL BE NO LESS THAN HE IS AT PRESENT RECEIVING. THE DIFFICULTY IS TO AVOID TAX COMPLICATIONS. AS WE SEE IT, THE BEST ARRANGEMENT WOULD BE FOR YOU TO RETAIN HENRY ON YOUR PAYROLL THROUGHOUT HIS PERIOD OF ABSENCE, AND PAY AND TAX HIM AS A HONG KONG RESIDENT. THE HONG KONG GOVERNMENT WOULD BE REIMBURSED WITH THE NET COST OF HIS EMOLUMENTS (HIS SALARY LESS TAX PAYABLE IN HONG KONG). THIS WOULD BE PAID BY THE FCO FOR THE MONTH OR SO THAT HENRY MAY SPEND IN LONDON ON BRIEFING: AND BY LORD CARVER'S INTERIM ADMINISTRATION FOR THE PERIOD WHICH HE SERVES IN RHODESIA. UNDER THESE ARRANGEMENTS HENRY SHOULD NOT BE LIABLE FOR EITHER UK OR RHODESIAN TAX, AND WOULD CONTINUE TO RECEIVE HIS PRESENT NET EARNINGS.
2. 1 VERY MUCH HOPE THAT SUCH AN ARRANGEMENT WOULD BE ACCEPTABLE TO THE HONG KONG GOVERNMENT. ANY OTHER WOULD APPEAR TO
PRESENT VERY GREAT DIFFICULTIES IN RHODESIA. IF YOU CAN ACCEPT THE PROPOSED ARRANGEMENT, WE SHOULD BE GRATEFUL FOR FULL DETAILS OF HENRY'S PRESENT EMOLUMENTS AND TAX POSITION.
OWEN
FILES
PPO
HK & GD
RHOD D PS/PUS
CONFIDENTIAL