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CONFIDENTIAL

22/1

CHANCELLOR OF THE EXCHEQUER

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Hong Kong: Arrangements for Her Majesty's Overseas

Civil Service

1. I am disappointed that, after six weeks of

consideration, you were not able to reply more positively to

my minute of 1 May and my further minute to you of 12 June.

2.

I believe the time has come, following discussions

between officials, to take a Ministerial view of these

issues. Otherwise the deadlock will continue. We should

not allow this to happen, given that Chris Patten takes up

his appointment in early July. The officers concerned

occupy key positions in the administration in Hong Kong and the police force. Chris will need their full support.

will not get it unless we have put proposals on the table

which address these officers' concerns.

He

3.

I therefore repeat my proposal for a very early

meeting.

I think it is important that Chris Patten joins us

at that meeting. He has a direct interest. We have a joint

interest in making a success of British administration until

1997. Chris also has a wealth of experience in dealing with

these issues from his time in the ODA.

CONFIDENTIAL

Page 150Page 151

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