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HKB 233/1
170
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Mr Burns
HONG KONG COLONIAL PENSIONS
1.
RJ S Muir
7 November 1991
Mr Chase, RMD
Mr Dew, RMD
Mr Cox, HKD
We had a word about Mr Cox's minute of 4 November to you recommending an approach to the Treasury about Hong Kong pension arrangements.
2. We must avoid any future cost to HMG being attributed to the Diplomatic Wing. There is a danger that by taking the lead in discussions with the Treasury we shall be manoevred into taking financial responsibility either for the full amount or for any shortfall the Treasury are unwilling to cover. Care also needs to be taken in deploying the argument that for political reasons we cannot ask Hong Kong to pay. Such arguments allow the Treasury and the Aid Wing to claim that the question of payment is a foreign policy matter rather than a strict obligation and that we would be paying over the money in the interests of maintaining good relations.
3. We agreed that you would conduct proceedings on the basis that this is a matter between Treasury and the Aid Wing with the Diplomatic Wing role confined to urging them to reach agreement. I can see your interest in taking a more forward position but it is essential that the Treasury and/or the Aid Wing should be left holding any financial baby.
4.
John Dew of RMD will attend your meeting.
RJ S Mair
MINABH
MANAGEMENT IN CONFIDENCE