14 January 1993

BY FAX

NJ Cox Esq

British Embassy PEKING

Confidential

012

Foreign & Commonwealth

Office

London SWIA 2AH

Telephone: 071-

Dee Nijel

HMOCS

Thank you for your letter of today's date in which you asked about the present position on HMOCS.

1.

2.

I think you are already aware that the Secretary of State met the Chief Secretary on 16 November 1992 to discuss HMOCs. Following this meeting, the Secretary of State wrote to the Chief Secretary clarifying a number of points. That letter was dated 18 November 1992: we have not yet received a reply.

3. The Governor wrote to the Prime Minister on 17 December 1992 setting out his position and asking that a political decision be taken. No 10 have not asked us to provide a draft reply, although they did request a copy of the Secretary of State's letter of 18 November. I spoke to Treasury officials earlier this week and gained the impression (although they would not confirm this) that No 10 has asked to see as soon as possible their reply to the Secretary of State. I understand we will receive this reply within the next few days and that it will not take us much further forward. The gap is likely to be so wide that a political decision has to be taken.

I attach copies of the correspondence referred to above, and will send you a copy of the Chief Secreary's reply when it is received.

4.

5. I am copying this letter to Mike Waters, HKG.

الله

your ev

Nijel.

N C G Whitney

Hong Kong Department

Happy New Year

enjoying Peking. I here discovered that

to the Tre

here you

the Chinese are

to deal with compared to the

dacty

Treasury!

cox.fax.ADM

SLM

Confidential

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