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MR GOODLAD'S VISIT TO HONG KONG: 24-28 MAY 1992

HMOCS

Points to make

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Important subject: difficult decisions for officers concerning their future and families' future. Appreciate HMOCS contribution to Hong Kong.

- I am carefully considering the report of the FCO/ODA team who held consultations here with your representatives from 7-11 May. I am sure they have reported fully and fairly.

- Before those consultations I had also studied the Committee's written comments and a summary of the comments received from a number of individual officers.

- On procedure, we have considered your request that we should now take a "package" approach and should not at this stage proceed to decisions solely on the benefits proposal we put to you (or on the alternative which you put forward, a general compensation scheme including the right of early retirement with immediate pension). We can agree to proceed in this way.

So, as a next step, we will aim to take a provisional view on the question of sterling safeguards and we shall then arrange further consultations with your representatives about the totality of arrangements to be made for HMOCS officers.

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- I emphasise that at this stage I cannot say whether or not our proposals will include a sterling safeguard

we may take a negative view on this (though final decisions would be taken only after the consultations and in the light of the points made by your representatives). Nor can I say

SISADK/1

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