FINANCE

CONFIDENTIAL

7. A further point on which an early decision must be taken is the

financing of the Monitoring team.

The paper on the test of

acceptability considered by Ministers simply stated that the team

would be appointed by HMG or by the Governor. On reflection I think

it is self evident that HMG should appoint the monitoring team if it

is to have any credibility at all as a check on the work of the

assessment office. It follows from this that the monitors should be

paid by HMG rather than by the Hong Kong government, and I so

recommend.

✓ receive the

,

8. I attach a preliminary note on the financial implications of

this. I have taken as

as my starting point that the individual who is

proposed as the Hong Kong monitor is a Hong Kong Justice of Appeal;

that he can scarcely be paid less than his salary during the period

in which he is acting as a monitor; and that the two monitors must

two

same fee. This me ans that we shall be paying rather

more than the going rate paid in the past to individuals in similar

posts (e.g the observors of the El Salvador election), and that

Treasury approval will be necessary. The figures, which in the case

of the UK based monitor includes air travel, subsistence and

accomodation, are explained in more detail in the attached paper.

They have been put together rather rapidly and for the moment must

be regarded as provisional. Our initial impression is that the

subsistence and accommodation figures, which have been suggested by

the Hong Kong Government, are more generous than necessary. We

shall be pursuing this further with Hong Kong.

9.

If the Secretary of State can agree in principle that HMG should appoint and pay the monitors we shall pursue the financial aspect in

more detail with Finance Department.

3 August 1984

Theran

A C Galsworthy

Hong Kong Department

CONFIDENTIAL

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