CONFIDENTIAL/ADMINISTRATION IN CONFIDENCE

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total of 7 section heads and desk officers and the residue of HKIOD after Seychelles independence will have only 2 desk officers. There has, for some time, been a question-mark over the Assistant's post in FED. When, for example, the department is preparing for the Secretary of State's visit to China and Japan or the Head of department is away the Assistant has a full job. But there have been times in the past two years when both the Head of department and Assistant have been present and the latter has been underemployed. The Assistant in HKIOD has had a full job so far but will not have one after Seychelles independence unless the intervention envisaged by the Hong Kong planning paper necessitates a much enlarged department. If, however, the two departments were put together a total of 9 desk officers would provide a full and rewarding workload for a DS 4 Head of department and a DS 5'S' Assistant.

10. The Inspector considered an amalgamation in 1972 (when Hong Kong department had not yet taken on responsibility for the Seychelles). He concluded that "with his heavy and probably growing responsibilities for Japan and China" the Head of FED could probably not devote consistently the amount of attention which Hong Kong's special problems demand. This may still be true today. And if the planning paper for Hong Kong is accepted there may have to be a considerable expansion of departmental responsibilities in order to implement it. The paper envisages a greater accountability by the Hong Kong government for its affairs and a more detailed direction from London. There would need to be what the paper describes as "a continuous dialogue over a greater surface of policy" which would în turn necessitate a more intimate working relationship between the Colony and the department. The planning paper is still under discussion with the Governor and it is not at present possible to assess staffing implications if it is accepted. But the sort of dialogue it envisages with finance, labour and other departments of the Hong Kong government might well require a strengthening of desks in the department. It is, however, arguable how much of the work could be done in the FCO and how much would, for obvious technical reasons, have to be farmed out to other Whitehall Departments. On finance matters for example, the department might become no more than an intermediary between the Hong Kong government and the Treasury.

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We do not therefore believe that the moment is opportune for bringing FED and HKIOD together. But we expect that even if the planning paper is accepted in the form proposed it will be some months before decisions are taken on additional staffing.

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CONFIDENTIAL/ADMINISTRATION IN CONFIDENCE

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