((c)

Nor

short-comings I have mentioned were linked perhaps to Ministers' wish, once they had formulated a basis for discussion to respond to HMOCS officers' wish for early

progress and for clearer news well before 30 June.

did we wish any Ministerial changes after the General

Election to cause any unnecessary loss of momentum or

delay. However I can assure you that we have been considering the substance of the issues very carefully

indeed.

Turning now to the heart of the matter, we should like to begin with an explanation of the nature of the proposed

scheme.

MR FISH: (Read and handed over Speaking Note at Annex A).

MR BIRCH: (Asked about the meaning of the reference to the

evolution of the public service)

MR COX: Perhaps I can come back to this point. I mentioned

that I should like later on to make a statement about the

question of loyalty, but I hope that this account of the

nature of our scheme already helps make clear that we

fully accept that it must be a matter of individual choice

for ex-HMOCS officers to decide whether to continue in the

service of the SAR. There is no legal obligation on them to do so, and we do not assert that there is any moral

obligation on them to do so either.

In my letter of 30 April I have already set out the

present position on the question of early retirement with immediate payment of pension and the question of sterling safeguards for pensions. We do not, however, wish to inhibit discussion on these issues or on the general

question of compensation. It is our task to inform

ourselves fully on your views on these matters. But we must also ask you to address the outline of our proposals and in particular the proposals for phasing payments.

NJCABT/3

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