CONFIDENTIAL

HONG KONG: HER MAJESTY'S OVERSEAS CIVIL SERVICE

Following our meeting with the Governor on 16 April, you

directed the Cabinet Office to recommend a solution.

They have

drafted a paper which summarises the position and points at

issue. The Cabinet Office have invited Ministers to say whether

they want to compromise and if so how, but have not recommended

a solution.

- The Governor considers that the paper does not present his position adequately. He is firmly opposed to my proposing any

concessions. There is therefore little point in a further bilateral between the Chief Secretary and myself.

-

The Governor considers that the only way to resolve this issue

is for a meeting to be held with the Chief Secretary under your chairmanship. I believe that such a meeting will be necessary

if I am to persuade the Governor to provide me with a

negotiating hand to play.

Will you agree to chair a meeting so that we can remove this tedious and long running subject from the agenda?

hk.hmocs.ADM

CONFIDENTIAL

SLM

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