st.ps/1
jm19.
CONFIDENTIAL
R
37
IAL Mr Fatman
་
mon
I Neoft=
Nowe
lecretary : State or Foreign Forelan 5 Commonwealth C
Wing Charles Street
London.
SWIA DAH.
December 1988
( :
11-
. י
Shem
I
Gamer
01.
LONG FONG: GENERAL COMPENSATION &SHEME
hank
-e
31st
.overc
14.
Your minute ot
November to Nigel Dawson outlinin easures you consider necessary to compensate members of He.
„verseas Cervice KMOCS: following
transfer -he
the Chinese in 1997.
C
So,
what
о
: recognise that t is desirable that sufficient number o HMOCC should stay on in Hong King after 1997 to ensure adequat continuity a public idministration. But deciding whether further .aducement .3 necessary, and, if
form Inducement would be materially effective are clearly difficul matters or judgement. However understand your reasons fo: belleving that a general compensation scheme for expatriat officers should be drawn up and announced shortly,
and that the scheme should be funded by HMG. I note that you expect it to cos cetween 10 and £20 million over the 10 years from 1997.
As you nave acknowledgea. the vote
woul responsibility aturally tail to the FCO/ODA. I think you are right to suggest aic hat diversion of aid funds to a territory not qualifying for
be defensible. But
do not think I can give any funds so far
in
advance ΟΙ undertaking on the source of the requirement. If we commit ourselves to a financial obligation our successors will naturally recognise the force of that commitment. But am sure that they will want to agree precisely how to meet 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.
A
JOHN MAJOR