CONFIDENTIAL
4KB 233/1 File
232
117670
MDHIAN 6605
Аллех
H. Policy
CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 3873
OF 171015Z DECEMBER 91
INFO ROUTINE PEKING, UKREP JLG HONG KONG
PERSONAL FOR BURNS, AUSS.
FROM GOVERNOR
PEKING PERSONAL FOR AMBASSADOR UKREPJLG PERSONAL FOR GALSWORTHY.
MIPT: HMOCS: COMPENSATION/INCENTIVE SCHEME AND PENSIONS.
1.
THE DISCUSSION WHICH TOOK PLACE LAST WEEK WITH THE WHITEHALL TEAM WERE USEFUL, ALTHOUGH AT TIMES FRUSTRATING FROM THE POINT OF VIEW OF OUR TEAM. I HOPE THAT WE HAVE CONVINCED THE TREASURY REPRESENTATIVES HOW POLITICALLY IMPOSSIBLE IT WOULD BE FOR THE HKG TO CONTRIBUTE TOWARDS THE COST OF ARRANGEMENTS FOR MEMBERS OF HMOCS. I HAVE DONE MY BEST TO EXPLAIN THIS TO THEM PERSONALLY AND OBJECTIVELY. BUT I HAVE THE IMPRESSION THAT AT THE BACK OF THEIR MINDS THEY STILL FEEL WE SHOULD BE ABLE TO FORCE ISSUES SUCH AS THIS THROUGH THE HKG MACHINERY (C.F. THE CHINESE ATTITUDE ON SIMILAR MATTERS.). THIS, AS YOU KNOW, IS NOT SO. EVEN TO APPROACH EXCO AND LEGCO WITH A PROPOSAL TO PROVIDE SPECIAL TREATMENT FOR HMOCS MEMBERS WOULD BE POLITICALLY INEPT.
2. THE WHITEHALL TEAM ALSO DO NOT SEEM ENTIRELY CONVINCED THAT WE WOULD HAVE PROBLEMS WITH THE CHINESE ON THE SORT OF CAPITALISATION SCHEME THEY ENVISAGE. THEY BELIEVE THAT, IF THE PROPOSAL IS LOGICAL AND FINANCIALLY BENEFICIAL IN THE LONG RUN, IT MUST BE ACCEPTABLE. SADLY IN A WAY, THE CHINESE SIMPLY DO NOT THINK IN THESE TERMS. IT IS INCONCEIVABLE THAT THEY WOULD ACCEPT THE LUMP SUM TRANSFER OF SUBSTANTIAL HKG FUNDS TO HMG FOR THE BENEFIT OF A GROUP OF BRITISH COLONIAL EXPATRIATES. IT WAS VERY HELPFUL THAT PETER RICKETTS AND ALAN PAUL WERE ABLE TO MAKE THIS POINT TO THE TEAM AT THE MEETING THEY ATTENDED ON 11 DECEMBER: BUT IT MAY NEED TO BE REINFORCED.
3.
THE TEAM SEEM TO HAVE SEIZED, WITH EXCESSIVE ENTHUSIASM, ON AN IDEA WHICH IS BEING CONSIDERED LOCALLY FOR ALLOWING OFFICERS TO BORROW AGAINST THE COMMUTED ELEMENT OF THEIR PENSIONS. I HAVE TOLD THEM THAT THIS IS ALMOST CERTAINLY A NONOSTARTER, FOR THE REASONS GIVEN IN MIPT. EVEN IF IT WERE FEASIBLE, IT IS
1
PAGE CONFIDENTIAL