13.
Extract for. Note of Discussion with Joy.
--15-5-47
I am no longer dealing with Hong Kong papers, but as this has come to me, perhaps I might make the following comments in reation to previous minutes.
(a) Mr. Jenkins, of the F.B.I. has confirmed that the Chinese Embassy refund to their Chinese students the amount deducted under P.A.Y. E. from their wages for income tax to the extent that it is more than the amount deducted from the lowest paid student. The purpose, of course, is to equalise the position as between those apprentices who earn small wages and therefore pay correspondingly low wine) tax) but large allowances, and those
who earn larger wages (and therefore pay correspondingly higher tax) and receive smaller allowances. This is in effect, adjusting the allowance to take account of income tax deductions. Mr. Jenkins added that, in the case of the Chinese students, the allowance itself is not taxable.
(b) It is politically important that these
The new batch) Hong Kong Chinese apprentices should not have cause to compare their position disadvantageously that of Chinese apprentices from China. It will also be important to ensure that, in the matter or allowances and income tax deductions they receive the same treatment as the first batch of Hong Kong Chinese apprentices who are already here.
I understand from Welfare Department that in the case of the first five the allowances which they receive not taxed.
Mr. Jenkins telephoned me yesterday to enquire when the further reply which was promised to (7) might be expected. The next step seems to be to inform the Governor that the C. D. & W. application has been approved and the F.B. I. have agreed, with two exceptions, with the findings of the Selection Committee in Shanghai and Hong Kong referred to in the Ambassador's despatch of last August. (80A on the '46 file) As so much time has passed since then it may be well to confirm, both from the Governor and the Embassy, that the candidates selected are, in fact, still available.
Habe sto
16.5.47.