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not only send the wrong signals to the Chinese, but which could well prompt local staff in Hong Kong to press for similar assurances. You will be only too well aware of the recent exchanges between Sir Patrick Wright and Mr Blatherwick about the need to minimise our contingent liabilities in respect of our dependent territories.

6.

I am sure you will agree that it is most important that Our two departments continue to be absolutely consistent in the way we deal with HMOCS issues. Michael Stone agreed that we would clear proposed replies with each other, using the fax facilities. I shall be away from the office until 5 March and in my absence any draft replies should be sent to David Trotter in the first instance. He will consult my Under Secretary, Mr Kerby, as appropriate.

Ддий

D S FISH

Overseas Pensions Department 15 February 1990

2.

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