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SECRET

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L2 AUG 1993

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From:

NC G Whitney

HKD The Minister has seen and approved the telegram as amended The telegram has

as amended (copy

enclosed). innegos AD 14/7

Mr Ricketts

cketys

Mr gam PS/Mr/Go

Mr Goodlad

I

(book have

agree

Hong Kong Department

Date: 14 July 1993

A3:417

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clearlydı CA 197

HONG KONG: HONG KONG GOVERNMENT'S LOCALISATION POLICY

A

B

C

Problem

The Hong Kong Government (HKG) have proposed amending the

localisation policy, to preempt possible court action.

Recommendation

2.

That we should agree to Hong Kong's proposal but ask them to consider whether there is any scope for delaying a

decision. I submit a draft telegram which, to meet Hong

Kong's challenging deadline, will need to go this evening.

Background and Argument

3. Mr Ricketts' submission of 13 May outlined the problem facing the HKG over their localisation policy. In brief, there is no painless solution; all of the options available

will annoy expatriate officers, local officers and the Chinese to some degree. But we concluded (and advised Hong

Kong) that it would be better to take the initiative to amend

the policy rather than wait to be defeated in court.

4. Hong Kong have advised us that the Association of

Expatriate Civil Servants (AECS) are making increasingly

credible threats of court action and that they have

identified a specific case involving an officer whose

contract expires shortly in which HKG are vulnerable.

HKG have therefore decided to consult ExCo on amending

immediately the localisation policy. This would allow

The

goodlad.local2/CIVILSER/bp

1

SECRET

69

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