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CONFIDENTIAL
R
130 1.cc Mr Fatman-
2. PA
N
411
Treasury Chambers Partament Street. SWIP BAG KWJ
The Rt Hon Sir Geoffrey Howe QC MP Secretary of State for Foreign Affairs Foreign & Commonwealth Office
King Charles Street
London.
SW1A 2AH ›
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37
Gl
me liter in Gime-
4. 17
December 1988
لم
rebou
6-2011
HONG KONG: GENERAL COMPENSATION SCHEME
34
Thank you for your minute of 24 November to Nigel Lawson outlinin the measures you consider necessary to compensate members of He
(HMOCS) following the Majesty's Overseas Service
transfer C
sovereignty to the Chinese in 1997.
C
I recognise that it is desirable that sufficient numbers © HMOCS should stay on in Hong King after 1997 to ensure adequat continuity in public administration. But deciding whether further inducement is necessary, and, if so, what form inducement would be materially effective are clearly difficul matters of judgement.
I understand your reasons. fc believing that a general compensation scheme for expatriat officers should be drawn up and announced shortly, scheme should be funded by HMG. I note that you expect it to cos between £10 and £20 million over the 10 years from 1997.
However
and that th
As you have acknowledged, the vote responsibility - woul. aturally fall to the FCO/ODA. I think you are right to: sugges hat diversion of aid funds to a territory not qualifying for ai would net be defensible. But I do not think I can give an
So far in undertaking on the source of the funds
advance requirement. If we commit ourselves to a financial obligation ou:
Comm witment successors will naturally recognise the force of that But I am sure that they will want to agree precisely how to mee: it in PES terms in the light of the circumstances then prevailing,
I should be most grateful to be kept in touch with progress.
I am copying this letter to Chris Patten.
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JOHN MAJOR
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