101

SECRET

FM PEKING

SECRET

нка 23311

TO DESKBY 120945Z FCO

TELNO 351

OF 12091OZ MARCH 92

TOP COPY Q Dior?

AND TO IMMEDIATE HONG KONG, UKREP JLG HONG KONG

164066

MDHIAN 6478

fa

у

3/3

100

FCO TELNO 192: HMOCS: BRIEFING THE CHINESE

1.

THE MAIN POINT TO EMPHASISE TO THE CHINESE IS THE INESCAPABLE OBLIGATION OF HMG TO COMPENSATE HER MAJESTY'S CIVIL SERVANTS OVERSEAS FOR A MAJOR CHANGE IN THEIR STATUS. THIS IN ITSELF IS NOT A SUBJECT ON WHICH THE CHINESE SHOULD EXPECT CONSULTATION. WE HAVE DECIDED TO BRIEF THE CHINESE ABOUT OUR INTENTIONS IN ORDER TO REASSURE THEM THAT WE ARE CONSCIOUS OF THE NEED IN HONOURING HMG'S OBLIGATIONS, TO DEVISE A FORMULA WHICH WILL ENCOURAGE AS MANY HMOCS OFFICERS AS POSSIBLE TO STAY ON AFTER 1997. THE FINAL TOTAL FIGURE

FOR THE COMPENSATION/INCENTIVE PAYMENT IS A MATTER FOR HMG AND THE HMOCS, NOT/NOT FOR THE CHINESE SIDE. HAVING BRIEFED THEM WE WOULD HAVE TO BE READY TO LISTEN TO ANY VIEWS WHICH THE CHINESE SIDE MIGHT HAVE. HOWEVER, IF THEY SHOULD ARGUE THAT WE SHOULD HAVE CONSULTED THEM ON THIS MATTER THEN WE SHOULD DEFEND OUR PRINCIPLED POSITION ROBUSTLY. IF THEY OBJECTED VERY STRONGLY TO DETAILS OF THE SCHEME WE MIGHT OF COURSE WANT TO RECONSIDER, DEPENDING ON THE CONTENT OF THEIR ARGUMENT AND THE INTENSITY OF THEIR PROTEST.

(99

ON THE REDRAFTED STATEMENT IN FCO TELNO 15 TO UKREP JLG, WE HAVE ONLY ONE POINT OF DETAIL:

2.

PARA 7: WE SUGGEST THE LAST SENTENCE ''ALTHOUGH ALL FIGURES BEYOND 1 JULY 1997'' BE DELETED. THE POINTS MADE IN THAT SENTENCE HAVE ALREADY BEEN COVERED IN THE PREVIOUS TWO SENTENCES. WE ARE STILL UNCLEAR ABOUT THE REASONS FOR RETAINING THE 5TH SENTENCE OF THIS PARA, ''IN PRACTICAL TERMS.... IN 1997'' (PARA 29 OF OUR TELNO 344 REFERS). WE CONTINUE TO BELIEVE THAT THERE IS NO POINT IN RAISING FIGURES WITH THE CHINESE UNLESS A) THE FIGURES ARE CLEAR AND HAVE BEEN AGREED: OR B) WE ARE WILLING TO ENGAGE IN NEGOTIATIONS WITH THE CHINESE AS TO HOW MUCH THE FINAL FIGURES SHOULD BE. AS WE SEE IT WE ARE NOT AT THE STAGE OF (A) AND (B) GOES CONTRARY TO OUR STRATEGY OF BRIEFING THE CHINESE RATHER THAN

CONSULTING THEM.

MCLAREN

92

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