SECRET FM FCO
TO DESKBY 23100OZ HONG KONG
TELNO 604
OF 221032Z JUNE 93
SECRET
Qor
000621
MDHOAN 4651
Few 233/1
PERSONAL FOR GOVERNOR FROM MR GOODLAD
YOUR TELNO 984: HMOCS: INFORMAL DISCUSSIONS WITH THE TREASURY
1.
Thank you for this prompt response to our account of where
I have been the Department has got to with Treasury officials. thinking about how we might best take matters forward, following our talk on the telephone.
2.
I have checked with officials, who confirm that there is no chance of obtaining Treasury agreement to an acceptable overall package within the next few days even if we were to offer factors for the compensation scheme based on those used in Fiji and the Western Pacific Schemes. Treasury officials would insist on having some time to assess the financial implications of such an offer and, as indicated in our telno 592, they still have further work to do on the sterling pension safeguard scheme and the proposed amendment to SPOS.
3.
I f
But
I know at first hand that pressure from the HMOCS Association for an announcement is growing. OPD (K) on 1 July presents a natural opportunity to try to force things to a decision. such a decision were to go in our favour, all well and good. we would have to be prepared for a less satisfactory outcome, in which OPD (K) members, who after all will only have a limited acquaintance with the subject, will either favour a compromise involving splitting the difference in cost, or alternatively will invite the Cabinet Office to fulfil their original brief of recommending a solution. The Treasury have said that they do not believe the issue needs to be put to OPD (K). There does now seem to be a real chance that we could in time secure an acceptable deal through official-level negotiations including a compensation scheme involving slightly lower factors, and a sterling safeguard
If the at 16:1, albeit with the proposed Treasury mechanism. Treasury can see these elements falling into place, I doubt they would let the SPOS amendment stand in the way of an overall deal. If, however, we take the issue to OPD (K) and are sent away to
PAGE 1 SECRET