TNAG-0686-FCO40-835-Secondment-of-Deputy-Commissioner-of-Police-in-Hong-Kong-1977 — Page 40

GR 200

IMMEDIATE

CYRWER CAT A

FM F C O 201025Z

CONFIDENTIAL

STAFF IN CONFIDENCE

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Bu maddy 12 2h

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RECEIVŁO ́! REGIGURY NO.

2 1 OCT 1977

DESK OFFICER

INDEX

PA

51

REGISTRY

Action Taken

3

TO IMMEDIATE HONG KONG TELNO 799 OF 20 OCTOBER

PERSONAL FOR GOVERNOR FROM UNWIN, PPD. YOUR TEL 1027 OF 13 OCTOBER: COMMISSIONER OF POLICE FOR RHODESIA.

1. WE HAVE BEEN SEARCHING FOR A WAY OF MEETING HENRY'S ASSUMPTION

THAT HIS NET EMOLUMENTS WILL BE NO LESS THAN HE IS AT PRESENT RECEIVING. THE DIFFICULTY IS TO AVOID TAX COMPLICATIONS. AS WE SEE IT, THE BEST ARRANGEMENT WOULD BE FOR YOU TO RETAIN HENRY ON YOUR PAYROLL THROUGHOUT HIS PERIOD OF ABSENCE, AND PAY AND TAX HIM AS A HONG KONG RESIDENT. THE HONG KONG GOVERNMENT WOULD BE REIMBURSED WITH THE NET COST OF HIS EMOLUMENTS (HIS SALARY LESS TAX PAYABLE IN HONG KONG). THIS WOULD BE PAID BY THE FCO FOR THE MONTH OR SO THAT HENRY MAY SPEND IN LONDON ON BRIEFING: AND BY LORD CARVER'S INTERIM ADMINISTRATION FOR THE PERIOD WHICH HE SERVES IN RHODESIA. UNDER THESE ARRANGEMENTS HENRY SHOULD NOT BE LIABLE FOR EITHER UK OR RHODESIAN TAX, AND WOULD CONTINUE TO RECEIVE HIS PRESENT NET EARNINGS.

2. 1 VERY MUCH HOPE THAT SUCH AN ARRANGEMENT WOULD BE ACCEPTABLE TO THE HONG KONG GOVERNMENT. ANY OTHER WOULD APPEAR TO

PRESENT VERY GREAT DIFFICULTIES IN RHODESIA. IF YOU CAN ACCEPT THE PROPOSED ARRANGEMENT, WE SHOULD BE GRATEFUL FOR FULL DETAILS OF HENRY'S PRESENT EMOLUMENTS AND TAX POSITION.

OWEN

FILES

PPO

HK & GD

RHOD D PS/PUS

CONFIDENTIAL