CONFIDENTIAL
123015 MDHIAN 101
MASS OF EARLY RETIREMENTS WITH RIGHT TO IMMEDIATE PENSION THREATENED TO PUT STRAIN ON THE CIVIL SERVICE BUDGET, THEY WOULD REGARD THIS AS A MATTER FOR SERIOUS CONCERN.
5.
YOUR PARA 8: THE CONSIDERATIONS IN PARAS 3 AND 4 ABOVE ALSO APPLY. IF THE EFFECT OF THE PROPOSED CHANGES WERE TO INCREASE THE LIKELY FINANCIAL BURDEN OF THE SARG AFTER 1997, THE CHINESE WOULD PROBABLY OPPOSE THEM.
6. DESPITE THE UNAVOIDABLE NEED TO DISCUSS WITH THE CHINESE HK LEGISLATION WHICH IS TO SURVIVE 1997 OR ARRANGEMENTS WHICH WOULD IMPROVE A SIGNIFICANT EXTRA BURDEN ON SARG FINANCES, WE HAVE SERIOUS DOUBTS ABOUT ALLOWING THE CHINESE ANY GREAT SCOPE FOR INTERFERENCE IN THIS ISSUE. THEY WOULD FIND IT DIFFICULT TO RESIST SEEKING TO EXPLOIT POTENTIAL DIFFERENCES BETWEEN THOSE ON EXPATRIATE AND LOCAL CIVIL SERVICE TERMS.
MCLAREN
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/MR GOODLAD
PS/PUS
SIR J COLES
MR BURNS
MR KERBY
RMD
NNNN