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PS/Mr Goodlad
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CONFIDENTIAL
Decat State
FROM: P F Ricketts
Hong Kong Department
DATE: 9 June 1992
cc: PS/Mr Patten
PS/Lady Chalker Sir J Coles Mr Kerby, ODA Mr Fifoot
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Mr Fish, ODA
Mr Davies, FED Miss Brooks,
Legal Advisers Mr Wye, RAD
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HONG KONG: HMOCS ARRANGEMENTS
1.
As requested in the Private Secretary's minute of 8 June, I submit a draft letter from the Secretary of State to the Chancellor, proposing a meeting next week to discuss both sterling safeguards and compensation.
2.
The revised compensation proposal reflects discussion at the meeting which Lady Chalker chaired on 5 June and A consideration of other possible options. Some explanatory comments are attached for Ministers' information (not for copying to the Treasury).
3.
We shall work up briefing for the proposed meeting. One point we shall need to cover is a possible Treasury argument that any cost increase due to our revised compensation proposal should be met from other FCO Votes, Aid and/or Diplomatic Wing. We must resist this strongly, insisting that new money must be found: the fulfilment of our obligations to HMOCS officers and Hong Kong's continuing success are interests of the Government as a whole.
PF Ricketts