TNAG-1330-FCO40-1757-Future-of-Hong-Kong-test-of-the-acceptability-of-the-Joint-D-1984 — Page 252

CODE 18-77

Mrs Klowak, HKD

MANAGEMENT IN CONFIDEN Ceference.

SIR P NAIRNE: HK MONITORING

1.

EMOLUMENTS

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Так

105

24/2

As you know, Mr Galsworthy told me recently that Sir P Nairne was concerned about the abatement to his CS pension which might result from the payment he receives from us for the HK monitoring exercise.

2.

At the moment the situation is that he receives a CS pension of £22,608.39 (taxable) pa. PSD, who have consulted the PMG's office, tell me that Sir P Nairne will be permitted to earn, in addition,

a government salary of an equal amount calculated on a quarterly basis, ie £5,652.10 (gross) during the 3 month period ending 30 November 1984. Any amount in excess of this will be deducted from his pension. PSD's note and an extract from the relevant section of Estacode are attached.

3.

Since his overall estimated earnings during the 2 months period are expected to reap him an amount equivalent to the sum to be paid for the services of the HK monitor, Mr Justice Li (£4,350 per month). The calculation is as follows:

Estimated earnings for Oct/Nov Maximum permitted earnings in the quarter ending 30 November 1984

Amount by which pension would be abated:

8.700

9

5,652

3,048

In addition, Sir P Nairne would stand to lose a portion of his Oxford University salary for the 2 months period of about £3,500. However, the picture is not really as grim as the above might suggest and overall Sir P Nairne would be far from out of pocket at the end of the day. In addition, although I have tried to avoid clouding the issue by including "fringe benefits" in my calculations, I think that we should not entirely lose sight of the fact that apart from free accommodation he will receive about £30 a day for subsistence. However, even if we base the calculation only on the actual earnings (ie excluding subsistence) he should gross about £2,100 over the amount he would ordinarily expect to earn this year as follows:

1984

University Pension FCO fees

Estimated Normal Earnings (Gross)

21,000 22,000

Nil

43,000

On Assignment (Gross)

17,500 18,952 (abated)

8,700

(10 months)

45,152

ie "Profit" of £2,100 (Gross)

MANAGEMENT IN CONFIDENCE

14.

You'..........