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HKA 233/1
196
045165
MDHIAN 8967
SECRET
FM PEKING
TO DESKBY 01093OZ FCO
TELNO 470
OF 010436Z APRIL 92
AND IMMEDIATE HONG KONG, UKREP JLG HONG KONG
TOP COPY Q DIST?
FCO PERSONAL FOR RICKETTS, HKD
HONG KONG PERSONAL FOR GOVERNOR
195
YOUR TELNO 585: AMOCS
1. WE THINK THAT WHILE THE CHINESE MIGHT STILL HAVE THE SUSPICIOUS FORECAST IN FCO TELNO 452 ABOUT THE LOYALTY OF HMOCS RECEIVING COMPENSATION PAYMENTS FROM HMG AFTER 1997, THERE IS AN EFFECTIVE COUNTER ARGUMENT VIZ THAT WITHOUT THE PAYMENTS THE PROPORTION OF EXPERIENCED CIVIL SERVANTS STAYING ON AFTER 1997 WOULD BE MUCH SMALLER. LU PING AND OTHER RECENT CHINESE VISITORS TO HONG KONG HAVE EMPHASISED THE IMPORTANCE CHINA ATTACHES TO CONTINUITY IN THE
CIVIL SERVICE. THEY ARE UNLIKELY THEREFORE TO MAKE RHETORICAL POINTS IN THIS AREA.
2. CHINA WILL HOWEVER BE VIGILANT TO ENSURE THAT THE COSTS OF ANY SCHEME DO NOT FALL ON THE INFANT HKSARG. UKREP JLG TOLD GUO ON 13 MARCH (UKREP JLG TELNO 91 REFERS) THAT ALL ELEMENTS WOULD BE WORKED OUT WELL BEFORE 1997 AND WOULD BE PAID BY HMG DIRECT. GUO SPECIFICALLY CHECKED, AND RECEIVED AN ASSURANCE, THAT HMG WOULD PAY. IF WE NOW TALK VAGUELY IN TERMS OF HKG'S INVOLVEMENT IN ARRANGEMENTS FOR THE COMPENSATION SCHEME, THE CHINESE COULD WELL CALL FOR CONSULTATION AND CONSENSUS BEFORE ANY DECISION IS REACHED. THEY COULD ALSO ACCUSE US OF MISLEADING BRIEFING.
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