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Mr Walker

RECE

Y

RAD

2 1 NOV 1990

HONG KONG:

DISCUSSIONS WITH THE CHINESE DURING THE

NEGOTIATIONS FOR THE JOINT DECLARATION

1.

At some stage in the not too distant future (3 t 6

months I estimate) we shall have to consult the Chinese over our proposals for dealing with HMOCS members in the Hong Kong Civil Service. We shall also then have to explain our proposals to HMOCS members and to dodge the bodyliners. Before doing so we shall need to be aware what, if anything,

was said on this subject during the negotiations leading up to the signing of the Joint Declaration in 1984.

of

awaren

2. There are two main areas of concern. Did we ever

discuss with the Chinese the question of providing a

sterling safeguard for pensions of HMOCS members: probably

in the form of a guaranteed fixed exchange rate? The other issue concerns compensation payments to MOCS members at around the change of sovereignty. Did this come up?

Mr Shipley of HKG, who was involved in at least some of the civil service negotiations, cannot remember either having

been discussed. But we all need to know for sure.

3.

4. Is this something you could help us with please?

20 November 1990

M V Stone

Hong Kong Department

WH312

270 2651

CC: Mr Paul

Ms Major

ROZAUU/1

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CONFIDENTIAL

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