TNAG-2879-FCO40-4151-Agreements-between-the-Hong-Kong-Special-Administrative-Regi-1993 — Page 39

Inland

Revenue

CONFIDENTIAL

370/9

International Division

Strand Bridge House 138-142 Strand

LONDON

76A

Wendy Wyver

Hong Kong Department Foreign Office

Date: 2 December, 1993

Our ref:

Your ref:

WC2R 1HH

Telephone: 071-438

6348

International: 44 71 438

GTN: 3541

Fax: 071-438

6865

Dear Wendy

UK/HONG KONG DOUBLE TAXATION MATTERS

Mr Garrett's letter of 22 November about agreements between the United Kingdom and Hong Kong after 1997, which we have discussed, has prompted me to write to you about the present state of play on the prospect for double taxation talks.

Some while ago we held exploratory talks with Hong Kong about a tax treaty intended to eliminate double taxation of shipping and aircraft profit.

As your papers will show, the essential preliminary step was for HKG to discuss the proposal with the Chinese Authorities. The forum for this was to be the regular Joint Liaison Committee meeting. I understand that other pressures have so far kept this item off the agenda for these meetings. In view of the current round of visits to London by Hong Kong Government officials this month, you agreed to establish what the current position was and when progress was likely to be made.

Koaube

RAC JARVIS

Jar 120.doc

CONFIDENTIAL