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FROM:

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14/6-

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we have the

DATE:

Hong Kong Department

6 June 1989

2.

nationality package ageet

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|_ HKC 231/1

Mr

Raul

Mr

McKaren

14 JUN 1989

HONG KONG: GENERAL COMPENSATION SCHEME

1.

Miss Marssen.

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Mr Foggioz. 1416 мободног

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I understand that Mr McLaren had a brief word with Sir p

Cradock in Washington last month about the General Compensation: Scheme and that his advice was not to raise this matter with thes Prime Minister until the current review of our

nationality/immigration policies has been completed. As this process is likely to take several months and probably even longer, this would mean delaying further progress on the General Compensation Scheme until the end of the year at the earliest..

2. I think we should therefore revert to Sir P Cradock on this

matter, making clear that:

(i)

time

there will never be an ideal home to raise this matter: with the Prime Minister but the Secretary of State thinks it important to press ahead with it quickly, especially in the light of the raft of other difficult Hong Kong issues that will be coming up over next few months. Lord Glenarthur also agrees that this question cannot be allowed to dffit..

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+

(ii) there is mounting pressure in Hong Kong for an early decision The deadline for HMOCS contract officers to decide whether to transfer to pensionable terms has already been delayed several times. Further delays and extensions of the deadline would be badly received. The Governor has pressed us on a number of occasions for early action on the Scheme.

(iii) the attention of the Foreign Affairs Committee has already

begun to focus, in the nationality context, on the problem of sustaining civil service morale: in the peto

1997.

SELRETA

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