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labour problems in Hong Kong; item 17 for a telephone call in 1977 is not allowable; item 18 is allowable but can only be charged against the second stage; item 19: I have authorised the payment of one night's subsistence for Professor Turner; item 20: I can authorise the payment of HK$88 for books purchased relating to Hong Kong. Nothing else is supported apart from two recorded packages to you and the OLA for which I am prepared to authorise £2.
5. I am sorry if this appears to be niggling, but Professor Turner has shown that he himself is concerned to claim every ha'penny due and also many ha'pennies not due to him.
6. On the question of income tax deductions and national insurance deductions: First, Professor Turner was clearly told in his letter of appointment that income tax would be deducted
and unless he obtains notification from the Inland Revenue to the effect that income tax should not be deducted, then the income tax deductions must stay. He has done much overseas work and must be familiar with this. Similarly, the DHSS insist that national insurance contributions must be deducted unless Professor Turner can produce a certificate from the DHSS advising that deductions should not be made. Once the payments I have authorised have been paid, we shall have spent nearly £16,000 on the first stage of the study, i.e. nearly £2,000 above the original amount authorised and almost the amount of £16,500 which Professor Turner claims is the grand total he requires for the first stage. He has now put a provisional total of £8,500 for the second stage and he should be warned that this figure should not be exceeded without prior authority.
7. I should like to discuss this with you if possible before your departure in case there is any item on which you require further explanation.
T Duffy
17 March 1977
Hong Kong Department-
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