CONFIDENTIAL

he table but if a solution was to emanate from HKG this

should be examined first. The discussion was adjourned for consideration but not concluded; it was for HKG to decide whether they had any flexibility or movement with the

proposal.

18.

Summing up Mr Paul said that the solution with the best chance of running seemed to be this idea of HKG paying over pensions to HMG before 1997. Mr Shipley undertook to reflect further and to send a formal response after consulting the Governor and the Hong Kong Chief Secretary.

JL6AAK/8

CONFIDENTIAL

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