Pridente

ECCOSTARY

Load Cantil

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CONFIDENTIAL

Sevotary of

25 FEB 1992

Pa

State

W56

approud the fraft.

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Am / Cort Caithum

25:1

FROM: P F Ricketts, HKD

DATE: 25 February 1992

cc: PS/PUS

Sir J Coles

Mr Muir

Mr Kerby, ODA

Miss Brooks, Legal Advisers

has seen & approved

Mr Burns PS/Lord Caithness

Private Secretary

Afichetts, HMD.

Thadeo.

HONG KONG: HMOCS

یی

Problem

The Chief Secretary's unhelpful response to our proposal for an announcement by Lord Caithness in Hong Kong

next week.

1.

Recommendation

2.

That the Secretary of State minute the Chief Secretary explaining why his proposal is unacceptable, offering a "compromise" and suggesting discussion in OD (K) if the Treasury cannot accept it. I submit a draft.

Background and Argument

A 3. The Secretary of State's minute of 11 February proposed that, pending clarification of the feasibility of one option for addressing the sterling safeguards issue, Lord Caithness should announce in Hong Kong next week that we have drawn up a compensation/incentive scheme and will open consultations

NC1ABU/1

CONFIDENTIAL

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