Sir P Cradock

SECRET

SUBMISSION

50

HKIL 04c17

FROM:

A C GALSWORTHY, HKD

DATE:

11 September 1984

MKKO 40/17

Private Secretary

FUTURE OF HONG KONG : OD(K) 12 SEPTEMBER

1. I submit speaking notes for the Secretary of State's use at OD (K) on 12 September on:

State of the negotiations (this will need to be filled in

tomorrow morning, when we have seen Wu's response).

-

White paper

Pensions

2. On pensions, we understand that the Treasury have briefed their

Ministers to oppose Hong Kong's preferred formulation for the

statement to members of the public service. Their argument is that the word "responsibilities" is too wide-ranging and would imply that HMG would accept contingent liability in the event of default. We disagree. The proposed answers for supplementaries make it clear that it would be for a future Government to decide what the position should be. This point is covered in the points to make. We understand on the other hand that Lord Whitelaw has indicated that

he agrees with the recommendation.

11 September 1984

SECRET

не

Jegiaey

A C Galsworthy

Hong Kong Department

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