SECRET
FM HONG KONG
TO IMMEDIATE FCO
TELNO 2823
OF 031039Z DECEMBER 92
SECRET
639
127703 MDHIAN 0573
HKA 233/1
TOP COPY
Q DIST?
638
OUR TELNO 2812: HMOCS: LINE TO TAKE WITH HMOCS ASSOCIATION
1.
WE HAVE NOW GIVEN CARTLAND THE LINE IN YOUR TELNO 1664. HE HAS REPLIED IMMEDIATELY, SAYING THAT THIS IS UNACCEPTABLE TO THE ASSOCIATION COMMITTEE AND THAT THEY ARE NOT PREPARED TO PUT SUCH AN AMBIGUOUS STATEMENT TO THEIR MEMBERSHIP. COPIES OF LETTERS ARE BEING FAXED SEPARATELY.
2.
FEELINGS SEEM TO BE DEVELOPING RAPIDLY. IT IS CLEAR THAT THE ASSOCIATION COMMITTEE ARE NOW VERY WORRIED THAT THEY ARE ABOUT TO LOSE CONTROL OF THE SITUATION. THEY BELIEVE THE STATEMENT THAT 'HMG HOPES THAT FURTHER CONSULTATIONS CAN BE HELD IN THE NEAR FUTURE ON A PACKAGE OF PROPOSALS WHICH WILL INCLUDE PROVISION FOR A STERLING PENSION SAFEGUARD' WILL BE INTERPRETED BY MOST MEMBERS AS EVIDENCE THAT HMG IS DELIBERATELY PREVARICATING. IN THEIR EYES ANY PROGRESS WOULD BE SEEN AS BEING CONDITIONED BY THE WORD 'HOPE'. THE ASSOCIATION COMMITTEE CONSIDERS THAT THIS COULD CREATE A FURORE. THE ISSUE WOULD BECOME PUBLIC AND THERE MAY BE PUBLIC CONDEMNATION OF HMG, AND POSSIBLY HKG, BY A NUMBER OF HMOCS OFFICERS. THE COMMITTEE DO NOT WANT THIS TO HAPPEN, BUT BELIEVE THAT IT IS INEVITABLE UNLESS A MORE POSITIVE STATEMENT IS FORTHCOMING VERY SOON.
3. WE ARE LOOKING AT WAYS OF PRESENTING THE RIGHT TO RETIRE ISSUE IN A MORE ENCOURAGING LIGHT. HOWEVER, THE CRUX OF THE PROBLEM IS THE COMPENSATION SCHEME AND STERLING PENSION SAFEGUARDS. THIS NEEDS TO BE SEEN AGAINST A BACKGROUND OF ASSURANCES TO THE ASSOCIATION THAT FURTHER CONSULTATIONS WOULD BE HELD DURING THE SUMMER. THEY DID NOT MATERIALISE. ASSOCIATION WAS THEN ASSURED THAT FURTHER CONSULTATIONS WOULD BE HELD IN THE AUTUMN, BUT THIS DID NOT HAPPEN EITHER. FRUSTRATIONS HAVE THEREFORE REACHED SERIOUS PROPORTIONS. WITHOUT A MORE POSITIVE STATEMENT, WE MAY EXPECT A STRONG REACTION DIRECTED AT HMG. CARTLAND AND HIS COMMITTEE WILL NOT EVEN ATTEMPT TO SEEK RE-ELECTION IN SUCH CIRCUMSTANCES.
4. OUR ASSESSMENT IS THAT THE MINIMUM ACCEPTABLE STATEMENT IS
PAGE
SECRET
1