TNAG-2905-FCO40-4179-Hong-Kong-Governor-1993 — Page 5

dttax18.1

CODE 18-77

Mr Whitney,

Hong Kong Department

Reference..

33

TAX POSITION OF GOVERNORS OF DEPENDENT TERRITORIES

(32)

1. We spoke about your minute of 15 January. SED's comments in writing.

2.

You asked for

I confirm that we in SED would not welcome a written PQ on this topic. It would, in our view, draw unwelcome attention in Gibraltar to the fact that the Governor pays no tax on his salary. Although The Queen's announcement that she would pay tax has not, so far, prompted discussion in Gibraltar about the Governor's position, there is no doubt that through the Gibraltar Information Bureau in London the government follows closely each and every Hansard. I do not doubt therefore that such a statement as you propose would quickly find its way onto the front pages of the Gibraltar Chronicle and would lead to pressure to bring the Governor into line with The Queen. We know that the Gibraltar government link the Governor's tax status to The Queen's.

3.

I hope you can find some other way of responding to the Governor of Hong Kong's request. We would wish to see sleeping dogs left to lie, for as long as possible.

ел

NP Carter

Southern European Department

18 January 1993

HKD 010/1

RECEIVED IN

16J. 1993

REGISTRY! 21.