Dictator's to restrict salary and capital in the Far East (6)

I believe the answer is:

taipei

'capital in the far east' is the definition.
(capital of Taiwan)

I can't explain the rest of the clue.

(Other definitions for taipei that I've seen before include "Asian city" , "Taiwanese capital" , "Capital of Taiwan" , "foreign capital" , "Capital of the Republic of China" .)

I've seen this clue in The Guardian.

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