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1 $65

D

MDHIAN 6320

SCHEME. IN PRACTICAL TERMS, AND SUBJECT TO CONSULTATION WITH HMOCS OFFICERS IN HONG KONG, THIS MIGHT INVOLVE A MAXIMUM ENTITLEMENT IN TOTAL OF ABOUT ONE-AND-A-HALF TIMES THE ANNUAL SALARY FOR A TYPICAL OFFICER IN 1997. A PART OF THIS WOULD BE PAYABLE AS COMPENSATION IN 1997 FOR THE REMOVAL OF THE SECRETARY OF STATE'S AUTHORITY: THE REMAINING PART WOULD BE PAID AT A LATER STAGE, AND ONLY ON CONDITION THAT THE OFFICERS CONCERNED WERE CONTINUING IN THE SERVICE OF THE HONG KONG SARG. ALL ELEMENTS WILL BE WORKED OUT WELL BEFORE 1997 AND WILL BE PAID BY HMG

DIRECT. UNQUOTE.

2.

WE CONFIRM THAT NEITHER UKREP NOR WE THINK IT NECESSARY TO MENTION THE TRADITIONAL RIGHTS TO RETIRE ON CHANGE OF SOVEREIGNTY WITH IMMEDIATE PAYMENT OF PENSION, AND TO BE CONSIDERED BY HMG FOR CERTAIN PURPOSES, ETC. IF THE CHINESE SHOULD ALLUDE TO THIS AT A LATER STAGE, WE WOULD SIMPLY SAY THAT IN THE CIRCUMSTANCES OF HONG KONG, AS IN CERTAIN OTHER TERRITORIES, WE DID NOT THINK IT WOULD BE HELPFUL TO ENCOURAGE EARLY RETIREMENT AT THE POINT OF TRANSITION. WE WOULD SAY THAT THE SECOND AVENUE, IE LATER CONSIDERATION FOR POSTS IN OTHER TERRITORIES, IS REALLY NO LONGER PRACTICAL, SINCE ONLY A HANDFUL OF SUCH POSTS REMAIN.

3=

WE HOPE THAT YOU CAN GIVE US CLEARANCE FOR THE DRAFT

STATEMENT DESKBY 12003OZ, IN ORDER TO GIVE US ADEQUATE TIME TO PUT IT TO THE CHINESE AND TO GET THE LETTER TO THE CHAIRMAN OF

THE HMOCS ASSOCIATION BY 23 MARCH.

4. PEKING TELNO 344 JUST RECEIVED. AS STATED ABOVE, WE WOULD PREFER TO RETAIN PARAGRAPH 5(B) AND OUR AMENDED VERSION OF PARAGRAPH 7, BUT NOT TO INCLUDE A REFERENCE TO THE TRADITIONAL RIGHT TO RETIRE ON CHANGE OF SOVEREIGNTY. THE QUESTION OF WHETHER TO INCLUDE SUB-PARAGRAPH 5(C) IS A MATTER OF JUDGEMENT. IF THIS IS LIKELY TO CAUSE YOU TROUBLE WITH THE TREASURY, WE WOULD HAVE NO OBJECTION TO IT BEING OMITTED.

WILSON

YYYY

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