CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 1078
OF 081115Z JULY 92
CONFIDENTIAL
HKA 233/1
TOP COPY Q DIST
INFO PRIORITY UKREP JLG HONG KONG, PEKING
457
004774
MDHOAN 7082
Pa
HONG KONG PERSONAL FOR ACTING GOVERNOR FROM RICKETTS, HKD
HMOCS: WAY FORWARD
1. YOU WILL WISH TO KNOW THAT THE SECRETARY OF STATE AND MR PATTEN DISCUSSED HMOCS ISSUES WITH THE CHIEF SECRETARY TO THE TREASURY LAST WEEK.
2.
THEY DISCUSSED THE FULL RANGE OF ISSUES, INCLUDING STERLING SAFEGUARDS, OUR REVISED PROPOSALS FOR AN IMPROVED COMPENSATION SCHEME, AND SPOS. THE CONCLUSION WAS THAT SOME FURTHER URGENT WORK SHOULD BE UNDERTAKEN OVER THE SUMMER ON POSSIBLE PACKAGES, INCLUDING COSTING, SO THAT MINISTERS COULD MEET AGAIN LATER IN THE YEAR WITH THE AIM OF MAKING DECISIONS.
3. ALTHOUGH NOT AS MUCH PROGRESS HAS BEEN MADE AS WE WOULD HAVE LIKED, IT IS SIGNIFICANT THAT ALL NOW AGREE A FULL PACKAGE MUST BE EXAMINED AND THAT THIS SHOULD BE DONE AS SOON AS POSSIBLE AFTER THE SUMMER. THE TREASURY ARE STILL PUSHING THE IDEA OF A PRIVATE SECTOR INITIATIVE TO PROVIDE A STERLING SAFEGUARD. WE MAY HAVE TO COME BACK TO YOU FOR MORE AMMUNITION ON THIS, SO THAT WE CAN CONVINCE ALL CONCERNED THAT IT IS INDEED NOT A VIABLE OPTION.
4. ON WHAT IS SAID TO THE HMOCS ASSOCIATION, WE HAVE INDICATED TO THEM THAT WE HOPE TO BE IN A POSITION TO HOLD A FURTHER ROUND OF TALKS IN SEPTEMBER. AT THIS STAGE, I BELIEVE THIS IS STILL POSSIBLE. THAT IS THE DEADLINE WE SHALL BE WORKING TO. BUT WE CANNOT GUARANTEE TO ACHIEVE IT.
HURD
YYYY
PAGE 1 CONFIDENTIAL