st.ps/11m19.12
CONFIDENTIAL
R
The Rt Hon Sir Geoffrey Howe CO MP Secretary of State for Foreign Affairs Foreign & Commonwealth C ice
King Charles Street
London.
SW1A 2AH ›
1
Ice Mr Karman
2.PA
1.
in Games
11.
11
December 1988
་
HONG KONG: GENERAL COMPENSATION SCHEME
ASL.
Thank you for your minute of 24 November to Nigel Lawson outlining - te easures you consider necessary to compensate members of Her
Service Majesty 5 Overseas
HMOCS Sovereignty to the Chinese in 1997.
necessary,
the following
and, if
ransfer of
I recognise that It is desirable that sufficient numbers of King after 1997 to ensure adequate HMOCS should stay on in Hong King after 1997 to continuity in public administration. But deciding whether a further Inducement is
so, what form of inducement would be materially effective are clearly difficult matters of judgement. However I understand Your reasons for believing that a general compensation scheme for expatriate officers should be drawn up and announced shortly, and that the scheme should be funded by HMG . I note that you expect it to cost between £10 and £20 million over the 10 years from 1997.
As you have acknowledged, the vote responsibility
would
aturally fall to the FCO/ODA. I think you are right to suggest aid hat diversion of aid funds to a territory not qualifying for would not be defensible. But I do not think I can give any
in so far undertaking on the source of the funds
advance of requirement. If we commit ourselves to a financial obligation our successors will naturally recognise the force of that commitment. But I am sure that they will want to agree precisely how to meet 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.
A
JOHN MAJOR
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