cst.ps/let/1pw3.7
HKA233/1
Pa
CONFIDENTIAL
F SECDETARY 1
TO THE
TREASURY
Mr Richett, HMD
Its
ния
4.49
"PS/M Goodlad. Ps/Baronca Chiller
Si Jloks
Mr Hum
Treasury Chambers, Parliament Street SWIP 3AG
071-270 3000
Fax 071-270 5456
Mirkity, DJA
Mirfiel
فله
Simon Gass Esq
Private Secretary
to the Foreign Secretary
Foreign Office
King Charles Street
London
SW1
3 July 1992
Dear Simon,
HONG KONG: HMOCS PENSIONS
The Foreign Secretary met the Chief Secretary at 9.00am on 2 July. Mr C Patten was also present.
2.
The Foreign Secretary explained that the people under consideration numbered about 700 senior officials whose presence in Hong Kong was considered by the Government to be essential between now and 1997, and desirable thereafter. They were an organised and anxious group who carried political clout in the UK which had yet to be fully realised. Ensuring that the HMOCS retained reasonable financial reward for the role they performed was a UK Government obligation. The HMOCS were dissatisfied with what they had
had been offered. It compared unfavourably to the compensation/incentive schemes and sterling guarantees which had been made available to HMOCS in previous dependant territories. It had been argued that the Hong Kong Government (HKG) should meet the cost of protecting HMOCS pensions. But its concern had to be with all its employees, not just the HMOCS. The Chinese Government would also have to support such an option were it to be pursued further, and that was very unlikely since their obligations extended to paying all HKG pensions after 1997. The Foreign Secretary said he recognised that whatever arrangements the Government eventually decided upon would be criticised but he saw merit in settling quickly upon something which was defensible and effective. Playing the matter long would probably end up costing the Government more.
The arrival of a new Governor
provided a good opportunity to take the initiative.
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