Control of both active and reactive power in voltage source converter (VSC) based HighVoltage Direct Current (HVDC) links could be very effective for system stability improvement. The challenge, however, is to properly allocate the overall control duty among the available control variables in order to minimize the total control effort and hence allow use of less expensive converters (actuators). Here relative gain array (RGA) and residue analysis are used to identify the most appropriate control loops avoiding possible interactions.Optimal allocation of the secondary control duty between the two ends of the VSC HVDC link is demonstrated. Active and reactive power modulation at the rectifier end, in a certain proportion, turns out to be the most effective. Two scenarios, with normal and heavy loading conditions, are considered to justify the generality of the conclusions. Subspace-based multi-input-multi-output (MIMO) system identification is used to estimate and validate linearized state-space models through pseudo random binary sequence (PRBS) probing.Linear analysis is substantiated with non-linear simulations in DIgSILENT PowerFactory with detailed representation of HVDC links.