cst.ps/dr/9mp16.6
CONFIDENTIAL
CHIEF SECR
SECRETARY
TO
THE
TREASURY
Mrkutelt, the 7 - Where next?
A B
15/Mr Goodlad iS / Barones Chatter Si J Coles Mr Hum
Treasury Chambers, Parliament Street SWIP BAG
071-270 3000
Fax 071-270 5456
HKA 233
402
The Rt Hon Douglas Hurd CBE MP
Foreign Secretary
Foreign & Commonwealth Office
King Charles Street
London
SW1A 2AH
M
pa 17 Stove m Mr fox ol
June 1992
fear fonglas
Stake drieted to press orally
( Secreten ol Stake
HONG KONG: ARRANGEMENTS FOR H M OVERSEAS CIVIL SERVICE (HMOCS)
for an laky meeting)
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Norman Lamont has asked me to reply to your minute of 12 June Thank you also for your minute of 1 May. I am sorry that I have not been in a position to reply before now, but these are complex
issues.
2.
I know that you are keen to have an early meeting, your aim being to agree a package of arrangements for HMOCS before Chris Patten arrives in Hong Kong at the beginning of July. share your desire to tackle this issue quickly So that we can bring to an end discussions which have been going on for years. But,
with the best will in the world, I doubt if your timetable is realistic. You appear to have re-thought significant elements of what is envisaged, and there are large gaps in the information and analysis where further work must be done. This need not be a great problem since I am not convinced that the timetable is as urgent as you might
might think. As you mentioned in your earlier minute, the Hong Kong Government (HKG) has now extended the deadline for the HMOCS officers' option between new and old pensions schemes from the end of June to the end of December. these circumstances it seems to me that, while recognising the need for progress, we have some time in which to look properly at your proposals, on the basis of a full and detailed analysis of their financial implications.
3.
In
It might be helpful if I make some initial observations to illustrate the shortfall in information which faces us at the moment. First it is essential that work is done on the financial implications of each element of your suggested package and of how these elements might interact with one another. For example, the possibility of an early retirement scheme needs very careful examination. Although you say this would involve no UK financial
CONFIDENTIAL