CONFIDENTIAL

4.

an

at the

I believe that the

the Governor's views have considerable weight.

be for My preference would

essentially symbolic scheme most, financed by HMG. ut the ODA are concerned that the weight of colonial precedent, and the influence of the pensioners' lobby, may be too strong to allow us to get away with a symbolic scheme. They are naturally concerned about the financial implications.

5. A detailed paper on the issue is being prepared by the ODA. In the meantime the Governor may wish to explain his concerns to the

Secretary of State.

e has just informed us that he proposes to

consult ExCo formally on the issue on 14 October.

Coten

CO Hum

9 October 1986

Hong Kong Department

CONFIDENTIAL

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