25 November 1992

Mrs Sandra Brown HM Treasury King Charles St London

CONFIDENTIAL

taxed zold

file

631

HKA 233/1

Foreign & Commonwealth

Office

London SWIA 2AH

Telephone: 071-

270 2647

Dear Sandra,

HONG KONG: ARRANGEMENTS FOR HMOCS OFFICERS

1.

If

The Governor of Hong Kong has been in touch with us since returning to Hong Kong about the increasing level of frustration among members of the HMOCS Association at the apparent lack of progress. The elections for officers of the Association are in mid December. The election notices have to be circulated by the end of this month and the Chairman hopes to include a progress report with these notices. the present, moderate, Committee is unable to argue that their approach has produced some results since the consultations in May, it is very likely that they will be replaced by a more radical and vocal group of police officers. This would make it very difficult to continue to deal with this sensitive issue in a low key manner.

2.

In practice a new Committee is likely to adopt a combative approach, involving unwelcome publicity and intensive lobbying of backbenchers. And it will almost certainly make it harder to secure acceptance by HMOCS members for whatever package we are able to agree.

The Governor has asked whether, in the light of the discussions between the Foreign Secretary and the Chief Secretary, it would be acceptable for him to say something positive to Michael Cartland, Chairman of the Association. He would like to be able to say that "HMG has agreed in principle to a revised compensation scheme and the provision of sterling safeguards and hopes that further consultations can be held as soon as possible".

4. We note that as regards sterling safeguards, Ministers' recent exchanges have focussed on the precise trigger level. I take it from this that the principle of an HMG-funded scheme has been accepted. As for the compensation scheme, the Foreign Secretary's minute of 18 November to Mr Portillo clarifies the details and explains how this relates to the principle of early retirement. Whatever details are finally agreed, I think it is clear that there will have to be a

conf.let JM HMOCS

CONFIDENTIAL

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