THE SARG.
SECRET
022750
MDHIAN 4632
(D) THE PACE OF LOCALISATION IN THE LEGAL DEAPRTMENT IS TOO SLOW.
APART FROM (D) ABOVE, WANG DREW NO DISTINCTION BETWEEN EXPATRIATE AND LOCAL CIVIL SERVANTS.
4-
THESE CLUES DO NOT AMOUNT TO MUCH. BUT WE HAVE NO DOUBT THAT THE CHINESE WILL WANT TO MAINTAIN AN EFFICIENT AND EFFECTIVE CIVIL SERVICE. TO THAT END WE THINK THEY WILL SEE THE NEED TO MAINTAIN CONTINUITY IN SOME KEY AREAS (EG FINANCE BRANCH) AND TO KEEP ON CERTAIN SPECIALIST TECHNICAL STAFF, MAINLY ON CONTRACT. BUT OUR BEST GUESS IS THAT THEY WILL PROBABLY EXPECT THE SARG TO PHASE OUT MOST GENERALIST EXPATRIATE CIVIL SERVANTS PROGRESSIVELY AFTER 1997.
5. THE REFLEX CHINESE REACTION TO A BRITISH PLAN TO GRANT THE RIGHT TO RETIRE EARLY WITH IMMEDIATE PENSION WOULD BE ONE OF SUSPICION. WHATEVER THEIR REAL VIEW OF THE SUBSTANCE OF THE PROPOSAL THEY WOULD ASSUME THAT IT WAS A BRITISH PLOT DESIGNED TO UNDERMINE THE SARG BY ENCOURAGING PEOPLE TO LEAVE. THEY WOULD ARGUE THAT IT WAS AN IMPORTANT TRANSITIONAL MATTER AND DEMAND FULL CONSULTATION IN THE JLG.
6.
IF WE COULD GET OVER THE INITIAL HURDLE OF SUSPICION, THE CHINESE MIGHT TAKE A MORE RELAXED VIEW. BUT THEY WOULD WANT TO LOOK VERY CLOSELY AT THE SMALL PRINT IN ORDER TO BE SURE THAT:-
(A) OUR PROPOSALS WOULD NOT LEAD TO AN EXODUS OR TO CLOSELY BUNCHED RETIREMENTS OF A KIND WHICH MIGHT NOT ONLY DISRUPT THE WORK OF THE GOVERNMENT BUT AFFECT BUSINESS CONFIDENCE.
(B) WE WERE NOT IMPOSING AN UNREASONABLE FINANCIAL BURDEN EITHER ON THE HKG OR (STILL MORE) ON THE SARG.
AGAINST THIS BACKGROUND WE HAVE NO STRONG VIEWS AS TO WHICH OF THE ALTERNATIVE APPROACHES LISTED IN PARAGRAPH 6 OF TUR MIGHT BE PREFERABLE TO THE CHINESE, EXCEPT THAT THEY WOULD BE LIKELY TO DISLIKE COURSE (D) BECAUSE OF THE FINANCIAL IMPLICATIONS. BUT IT WOULD BE BEST NOT TO SET OUR OWN THINKING IN CONCRETE UNTIL WE HAVE BROACHED THE SUBJECT WITH THE CHINESE.
7.
IT FOLLOWS FROM PARAGRAPH 4 ABOVE THAT WE DOUBT VERY MUCH WHETHER THE CHINESE ARE SO CONCERNED ABOUT CONTINUITY THAT WE COULD EXTRACT SOME NEGOTIATING ADVANTAGE FROM IT. ANY HINT THAT WE SAW
PAGE 2 SECRET
Page 240Page 241