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MDHOAN
ARE STRONG REASONS FROM THIS END WHY IT IS NECESSARY TO MAKE CLEAR THAT HKG ARE INVOLVED IN CONSIDERING WHAT ARRANGEMENTS, IF ANY, MIGHT BE APPROPRIATE. WE APPRECIATE THAT THIS MAY GIVE YOU DIFFICULTIES. BUT TO OMIT ALL REFERENCE TO HKG WOULD GIVE US SERIOUS PROBLEMS. WITH REGARD TO THE COMMERCIAL LOAN OPTION, WE ARE GRATEFUL FOR YOUR PRELIMINARY CONCLUSIONS IN YOUR TELNO 938. GIVEN THE VERY CLOSE INTEREST THAT THE TREASURY HAVE SHOWN IN THIS SCHEME - AND THE OUTCOME OF THEIR TALKS WITH BARINGS SET OUT IN OUR TELNO 566 - WE HOPE THAT YOU WILL KEEP IN CLOSE CONTACT WITH US ON HOW YOU DEAL WITH THIS. EVEN IF MARGOLIS' SPECIFIC PROPOSALS ARE NOT RUNNERS, THERE IS STILL A GOOD DEAL OF INTEREST IN THE TREASURY IN SCHEMES OF THIS KIND. TOO DISMISSIVE A REACTION COULD BE COUNTER PRODUCTIVE.
2. A FURTHER QUESTION ON CONTRACT OFFICERS WITH THE OPTION TO JOIN HMOCS. PARA 2 OF YOUR TELNO 845 HELPFULLY SET OUT THAT IN EARLY 1985 THERE WERE ABOUT 700 SUCH OFFICERS: NOW THERE ARE 240. WOULD IT BE POSSIBLE TO WORK OUT HOW MANY OF THE ORIGINAL
700 HAVE BECOME HMOCS MEMBERS OVER THE PERIOD?
3. WE WOULD BE GRATEFUL FOR COMMENTS, AND ANY THOUGHTS FROM UKREP AND PEKING, DESKBY 010930Z.
HURD
YYYY
MAIN
40
DISTRIBUTION
40
.HER MAJESTY'S OVERSEAS
.CIVIL SERVICE RESTRICTED HKD
LEGAL ADVISERS//MISS BROOKS FED
NEWS D
RAD//MR WYE
OVERSEA PENSIONS/ODA//MR FISH PS
PS/LORD CAITHNESS
PS/PUS
SIR J COLES
MR BURNS
MR KERBY
RMD
NNNN
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