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made miss the point that this is not a traditional compensation scheme but a special benefits scheme for Hong Kong taking account of a number of special factors which we would identify (draft speaking note attached). We should then suggest, as a clarification of our proposal, possible phasing over 10 years with equal payments of 10% in each year (ie still a little way from our bottom line). We should invite the HMOCS Association to expand on their
outstanding questions and should answer the main points made
by HMOCS officers, drawing on the other material attached
(see also para 15).
Day 2: we should listen to the HMOCS's considered comments
on this proposal, make some initial comments and then
undertake to reflect.
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Day 3: we should table the proposal we have put to the Treasury (ie 20% and 8 instalments of 10%), saying that we
would feel able to recommend this to Ministers. We should
remain in Hong Kong for an extra day to receive any comments the Association wish to make on it (but agreement is most
unlikely).
This approach reflects our view that it is desirable both
that our best proposal should be on the table before we leave Hong Kong, eg in case we need to defend our position
publicly, and that we should make some movement towards the Association Committee during the consultation process, ie we should not table our bottom line at the outset (but nor should we behave like carpet traders).
15.
We continue to work on the other explanatory material and defensive lines for deployment during these consultations. The attachment will probably need further refinement but it gives an idea of the issues and of the
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