CONFIDENTIAL
CONFIDENTIAL
FM FCO
TO ROUTINE HONG KONG TELNO 1056
OF 041645Z JUNE 91
RECE VEL
HKB 233 13
12 JUN1991
SY OFFICER
G
115555
MDLOAN 3495
TOP COPY Q DIST 2
FOR SECRETARY FOR THE CIVIL SERVICE HMOCS MATTERS
1.
attached.
HE
WE WERE SOMEWHAT SURPRISED TO READ THE LETTER YOU SENT TO COLVYN HAYE ON 27 MAY ABOUT WHERE WE STAND ON MOCS MATTERS. SUBSEQUENTLY QUOTED THESE AT THE RECENT OSPA AGM. THE SECOND PARAGRAPH OF YOUR LETTER SUGGESTS THAT HMG IS SERIOUSLY CONSIDERING A PROPOSAL FROM YOU THAT WE TAKE OVER THE PAYMENT OF PENSIONS TO FORMER MEMBERS OF HMOCS AT A FIXED EXCHANGE RATE TO BE AGREED.
2. WE HAVE CHECKED BACK THROUGH OUR PAPERS AND YOUR PROPOSAL WAS DISCUSSED AT THE MEETING WHICH SHIPLEY ATTENDED WITH THE TREASURY ON 15 OCTOBER 1990. AT THAT TIME, THE TREASURY MADE IT VERY CLEAR THAT THERE WAS NO WAY THEY WOULD ACCEPT SUCH A PROPOSAL UNLESS HKG WERE PREPARED TO COME UP NOW WITH A LUMP SUM REPRESENTING ALL CURRENT AND FUTURE HMOCS LIABILITIES, IE THE TREASURY WERE NOT PREPARED TO CONTEMPLATE THIS PROPOSAL IF THERE WAS ANY RISK OF HMG LOSING OUT FINANCIALLY. YOU WILL RECALL THAT THE TREASURY ALSO PUT FORWARD THEIR OWN PROPOSAL, MUCH ALONG THE SAME LINES, WHICH YOU REPLIED TO NEGATIVELY IN YOUR TELEGRAM 469 OF 13 FEBRUARY 1991.
3=
HURD
WE WILL HAVE TO WRITE TO OSPA SETTING THE RECORD STRAIGHT.
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CONFIDENTIAL