*
Capire to
SECRET
FM FCO
HKA 233/1
SECRET
TO PRIORITY HONG KONG
TELNO 737
OF 010935Z MAY 92
INFO ROUTINE UKREP JLG HONG KONG, PEKING
PERSONAL FOR GOVERNOR FROM BURNS, AUSS
HONG KONG CIVIL SERVICE ISSUES
fifort (Leg Adv)
Lave
293
Broadbent) Ecen. Ady 52046
जनता
57AM MDLOAN 4675
TOP COPY Q DIST?
вся
575
1.
WE DISCUSSED THIS BRIEFLY ON 29 APRIL, AND YOU INVITED US TO PUT OUR IDEAS IN WRITING.
2.
WE WERE GRATEFUL FOR YOUR TELNO 1139 (NOT TO UKREP JLG OR PEKING), OUTLINING PRESENT ADMINISTRATION THINKING ON POSSIBLE MEASURES TO OFFER HONG KONG CIVIL SERVANTS FURTHER REASSURANCE ABOUT THE SECURITY OF THEIR PENSIONS. WHEN SIMON BROADBENT, NIGEL COX AND I WERE IN HONG KONG AT THE BEGINNING OF LAST MONTH, THE PRESSURE OF AIRPORT AND OTHER BUSINESS MEANT THAT WE WERE UNABLE TO EXPLORE THIS IN ANY DETAIL, BUT ONE OR TWO OF OUR CONVERSATIONS HAD ENCOURAGED US TO BELIEVE THAT YOU MIGHT BE
ABLE TO WORK UP A SCHEME OF SOME KIND AND PERHAPS TO ANNOUNCE
THIS IN PRINCIPLE BEFORE THE 30 JUNE DEADLINE FOR OFFICERS TO
OPT FOR THE NEW PENSION SCHEME.
3. WE HAVE A NUMBER OF REASONS FOR TAKING AN INTEREST IN WHAT IS NATURALLY A MATTER FALLING WITHIN THE RESPONSIBILITY OF THE HKG:
(A) HMOCS: WE HAVE ALREADY EXPLAINED WHY WE BELIEVE THAT
POSITIVE HKG DECISIONS IN THIS REGARD WOULD BE CONDUCIVE TO POSITIVE MINISTERIAL DECISIONS HERE ON HMOCS MATTERS, WHICH WOULD IN TURN BE GOOD FOR HONG KONG. (I DO NOT THINK YOU SHOULD HOLD BACK HKG MEASURES OUT OF ANY FEAR THAT THEY MIGHT ENCOURAGE THE TREASURY TO RETURN TO THE CHARGE ON PRE-1997 CAPITALISATION OF HMOCS PENSIONS.) ANOTHER CONSIDERATION IS THAT YOUR ASSESSMENT OF THE LIKELY IMPACT ON LOCAL OFFICERS HAS
ALWAYS BEEN AN IMPORTANT ELEMENT IN OUR DECISIONS ON WHAT KIND OF HMOCS ARRANGEMENTS WOULD BE APPROPRIATE. WE APPRECIATE THAT EVEN THE MODEST HMOCS PROPOSALS WE SHALL BE TABLING DURING
THE CONSULTATIONS IN HONG KONG NEXT WEEK ARE LIKELY TO CAUSE RESENTMENT AMONG LOCAL OFFICERS. IF, AFTER THESE CONSULTATIONS, MINISTERS DECIDE TO REVIEW THE QUESTION OF EARLY RETIREMENT
PAGE
SECRET
1