CONFIDENTIAL
compensation and our sterling safeguards proposals are significantly less generous than has been the case with
other Dependent Territories. The announcement of proposals
only on compensation, with a holding line on the principle of a sterling safeguard is bound to produce disappointment
among HMOCS officers. But the Governor considers that the
situation will be manageable and the risks involved less
serious than allowing the present uncertainty to drag on. believe we should accept his judgement.
11. Lord Caithness plans to visit Hong Kong in the week of
1 March. He will be pressed very hard to make an
announcement.
I enclose the draft of a statement I should
like him to be able to make in Hong Kong. I should be
grateful to know if you are content.
12.
I am copying this minute to Linda Chalker.
Douglas Hurd
NIKABQ/4
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