CONFIDENTIAL

The Secretaries

Cabinet Committee on Immunitites

and Privileges

Cabinet Office

Dear Sirs,

Fille

(82

Foreign and Commonwealth Office

London SW1A 2AH

9 November 1984

HKK 040/53

RECEIVED IN REGISTRY

0 9 NOV 1984

DESK OFFICER

REG KY

INDEX

PA

Action Taken

HONG KONG AGREEMENT: LEGISLATION ON PRIVILEGES AND IMMUNITIES

FOR JOINT LIAISON GROUP

1. We have the following comments on Mr Mason's letter of 8 November to you (ref P5/143/84).

(a) We plan to legislate only to provide privileges and

immunities for the five Chinese members of the Joint Liaison Group while in London, as stated in paragraph 2 of the paper.

We are

therefore seeking tax exemption for representatives of HMG when in London. As Mr Mason correctly points out, the words "as appropriate" were included in paragraph 10 of Annex II for this reason.

(b)

A Hong Kong Government official will almost certainly serve as a member of the British delegation to the Joint Liaison Group. We are not, however, seeking immunities and privileges for this official in London as he will be a member of the UK delegation.

(c) Our thinking on the supporting staff for the Joint Liaison

Group is at an early stage, and will depend on our discussions with the Chinese. As we are not required to legislate to cover their case we are not asking the Committee to consider how we

should handle the matter at this stage.

2.

I have discussed these points with Mr Mason on the telephone and I understand that in light of these explanations we can take it that the Inland Revenue is content with the FCO note.

Yours faith fully

Jex Rill

J N Powell

Hong Kong Department

CC:

N H Mason, Inland Revenue, Policy Division, Somerset House,

LONDON WC2R 1LB

CONFIDENTIAL

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