27 October 1992

4KA 233/1

Dear

Chris,

Foreign & Commonwealth

Office

London SWIA 2AH

573

нках HK Tfile

Taxed (inc to PSIGH

WATERS(HE

25/10

From The Secretary of State

560

Thank you for your letter of 13 October.

As

I too am frustrated that we have not made faster

progress. A paper by FCO/ODA/Treasury officials setting

out a range of costed options is now almost ready.

as this is agreed with the Treasury, I will write to Michael Portillo setting out my conclusions. Your letter confirms my view that political decisions are

now needed to resolve this issue once and for all, in the

interests of good administration in Hong Kong, as well as in fairness to the HMOCS officers concerned. I shall be

seeking colleagues' agreement to a package of proposals which meet our obligations to provide compensation and a sterling safeguard, on a basis that we can justify in terms

of past practice as well as present circumstances.

I will ensure that you are kept in touch with

progress. We can if necessary discuss further when you

are here next month.

I am copying this to Michael Portillo.

DOUGLAS HURD

The Rt Hon Christopher Patten

AM

Dyn.

С

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