SECRET

FROM: A C GALSWORTHY HKD

DATE 11 September 1984

Sir P Cradock

Private Secretary.

FUTURE OF HONG KONG : OD(K) : 12 SEPTEMBER

RECEIVED IN

12SEP 1984

IN

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

We

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. 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

AC Galsworthy

Hong Kong Department

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