CONFIDENTI«L

Amend

para

1

Amend

para 6 + 8

3. Lord Caithness does not like the opening paragraph of the statement in FCO telno 544. He thinks it puts HMG on the defensive by appearing to come forward with a proposal only in response to pressure from the HMOCS association. He would prefer something along the following lines:

4.

"Mindful of its responsibilities HMG have carefully considered how to make provision for HMOCS in the special circumstances of Hong Kong becoming a SAR of the People's Republic of China on 1 July 1997. The Government have taken note of the representations they have received from the members of the Association of HMOCS in Hong Kong and other individual officers. They also recognise that members of HMOCS in Hong Kong wish to know as soon as possible the results of these deliberations."

Lord Caithness dislikes the reference throughout the statement to "an inducement". He would prefer to see the word replaced with an alternative formulation. For example, the first sentence of paragraph 6 of the statement might read:

"We envisage compensation payments being phased over a

period of years, so as to give greater benefit to those officers who continue their service in Hong Kong beyond 1997".

25 March 1992

CONFIDENTIAL

Zit

Peter Tibber

PS/Lord Caithness

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