XN000022-1993-07-20 — Page 2

TUESDAY, JULY 20, 1993

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PRIVY COUNCIL MAKES BRITISH NATIONALITY ORDER * * * * *

THE BRITISH NATIONALITY (HONG KONG) (SELECTION (AMENDMENT) ORDER 1993, WHICH PROVIDES FOR THE IMPLEMENTATION FINAL PHASE OF THE BRITISH NATIONALITY SELECTION SCHEME, WAS THE PRIVY COUNCIL TODAY (TUESDAY).

ORDER.

SCHEME)

OF THE

MADE BY

A GOVERNMENT SPOKESMAN SAID HE WELCOMED THE PASSAGE OF THE

"APPLICATIONS FOR THE FINAL PHASE OF THE SCHEME WILL BE INVITED BARLY NEXT YEAR. FURTHER DETAILS, SUCH AS APPLICATION PROCEDURES AND THE REVISED POINTS SYSTEM, WILL BE ANNOUNCED LATER," HE SAID.

UNDER THE SCHEME INTRODUCED IN DECEMBER 1990, UP ΤΟ 50,000 HONG KONG RESIDENTS AND THEIR DEPENDANTS MAY BE REGISTERED AS BRITISH CITIZENS WITHOUT HAVING TO LEAVE THE TERRITORY.

ABOUT 12,000 PLACES REMAINING UNUSED AT THE END OP THE FIRST PHASE WILL BE AVAILABLE FOR ALLOCATION IN THE FINAL PHASE.

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REVIEW OF GOVERNOR'S TAX POSITION

* *

THE INDEPENDENT PANEL APPOINTED BY THE ADMINISTRATION TO REVIEW THE GOVERNOR'S EXEMPTION FROM SALARIES TAX ON HIS OFFICIAL INCOME HAS RECOMMENDED THAT THERE BE NO CHANGE.

THE FULL REPORT OF THE PANEL'S FINDINGS AND

RECOMMENDATIONS

WILL BE PUBLISHED TODAY (TUESDAY).

THE PANEL WERE ASKED TO EXAMINE THE GOVERNOR'S TAX POSITION UNDER THE LAWS OF HONG KONG, THE GOVERNOR'S CONTRACT OF EMPLOYMENT AND THE REPORT OF THE ROYAL TRUSTEES AND THE MEMORANDUM OF UNDERSTANDING ON ROYAL TAXATION.

THE PANEL'S MAIN CONCLUSIONS ARE:

THE GOVERNOR'S TAX POSITION UNDER HONG KONG LAWS CLEAR. HIS OFFICIAL EMOLUMENTS ARE STATUTORILY FROM PAYMENT OF SALARIES TAX.

THE

IS VERY EXEMPTED

DOCUMENT

GOVERNOR'S LETTER OF APPOINTMENT IS A BINDING AND THE LEGAL OBLIGATIONS CONTAINED THEREIN SHOULD BE UPHELD.

IT WOULD NOT BE VERY MEANINGFUL TO DRAW ANY ANALOGY BETWEEN THE TAX POSITION OF THE QUEEN AND THE GOVERNOR SINCE THEIR TAX POSITIONS ARE DIFFERENT.

/"SINCE THE