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HMOCS
1. On the basis of telecon Dinham/Morris (23 June), we have discussed with Mr Goodlad whether to seek a decision from OPD (K) on 1 July. Mr Goodlad decided that, on balance, we should not/not include HMOCS on the OPD (K) agenda at this stage, but that we should redouble our efforts to bring the Treasury to show the flexibility necessary for an agreement.
2. We propose the following way forward:
- Our Special Advisers should brief the Chancellor's Special Adviser (Mrs Keswick) on HMOCS. Mr Goodlad will also speak to
her.
- The Foreign Secretary should speak to Mr Portillo, if possible together with the Chancellor, perhaps in the margins of next week's Cabinet, to emphasise that we cannot delay resolution of this issue. The Foreign Secretary could try to establish, without going into the details, whether the Chief Secretary would be prepared to move off his present proposal in order to reach a settlement, and if so, to instruct his officials to deal with this as a matter of urgency. We are faxing to you a draft speaking note, and would be grateful for your comments.
- For us at the working level to press Treasury officials to complete their further work on the Sterling Pension Safeguard and on SPOS. We will also need to consider internally with ODA how we could offer factors for the Compensation Scheme slightly less generous than those in the Hong Kong Limited Compensation Scheme, but which we can still defend as being sound actuarily and consistent with past practice.
3. We are aware that the Governor's forthcoming visit to London has raised expectations among HMOCS officers that a decision may
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