TNAG-0007-FCO40-43-Governorship-of-Hong-Kong-1968 — Page 87

RECEIVED IN

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copices

Treasury Chambers,

Great George Street,

London, S.W.1

29 FEB 063

Telepho

01-930 1234, ext. 193

Xc 2/16/2

27th February, 1968

25

apliti

12

Our ref: 2-FD 488/1043/01B Your ref:TC 2/16/2

Ди

Remeth

I am sorry you have had to wait so long for a reply to your letter of 13th December about Governors' salaries. (Kennedy has told me about the interim reply he sent and I am grateful for your agreement to the withdrawal of his letter

I would like to deal seriatim with the various propositions you have raised:-

2.

(i) that where a colonial territory cannot afford to pay an

increase in its Governor's salary or would refuse to pay if asked or where you consider that for political reasons the territory should not be asked to pay you may authorise an increase without reference to the territory.

Whilst we have already conceded the principle of a topping up of salary by H.M.G. we still prefer to retain the traditional principle that territories are primarily responsible for their Governor's salary, etc. There are some territories which we would expect to continue to pay the Governor's full salary, e.g. Hong Kong, Bahamas and Bermuda but should cases arise in which you consider an approach to the territory undesirable we would be willing to abide by your judgement. We would, however, still wish to be consulted in advance in all cases in which you con- sidered that a change in the Governor's salary was merited.

(ii) These topping up payments should be regarded as part of

salary, not an allowance and should be pensionable.

2

I have no difficulty in accepting that what we are considering here are payments intended to make up a Governor's salary to the level agreed for a particular post. You have referred to the earlier correspondence in which you asked that these payments be treated as allowances and as non-pensionable. Changes have since taken place particularly in the treatment of 0.S.A.S. inducement pay- ments and by analogy I can agree that these topping up payments should also be pensionable subject, of course, to the other necessary requirements being satisfied. In this latter connection you will wish to bear in mind in appropriate cases the limitations imposed by Section 4(2) of the Superannuation (Miscellaneious Provisions) Act 1967.

K.C. Christofas, Esq., M.B.E.,

Commonwealth Office,

Curtis Green Building,

Victoria Embankment, S.W.1.

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