SECRET
FM PEKING
TO IMMEDIATE FCO
TELNO 1496
OF 170539Z NOVEMBER 93
SECRET
HKA 233/1
(292)
062070
MDHIAN 3364
1- 1993
T
INFO IMMEDIATE HONG KONG, UKREP JLG HONG KONG
PERSONAL FOR RICKETTS, HKD
HONG KONG PERSONAL FOR DINHAM, GOVERNMENT HOUSE
258
سل
17.
YOUR TELNO 965 TO HONG KONG: HMOCS : BRIEFING THE CHINESE
SUMMARY
1 We strongly recommend a careful briefing by UKREP JLG.
DETAIL
2.
Congratulations to all concerned for successfully fighting a way through the obstacles to putting in place a package of arrangements for HMOCS (although we realise that HMOCS officers will be very disappointed by the rate set for the sterling safeguard).
3. As seen from here it would be damaging to our interests to under-estimate the Chinese angle in considering how now to present the decisions. The Chinese have a Legitimate interest in the stability of the Hong Kong public service in the approach to 1997. Matters are more sensitive now than when we last discussed this with them in March 1992, because of the constitutional row and the Localisation controversy. Particularly because of the inclusion of the sterling safeguard and the right of early retirement on full accrued pension, they can argue that these HMOCS arrangements are major matters straddling 1997, bearing on a smooth transition and (early retirement) with financial implications for the SARG, and that we are therefore obliged to consult them before taking action. We can of course reply that this is simply a matter of HMG's honouring its long-standing obligations to members of one of HM Services, but if we mishandle them the Chinese could, in the worst case, argue that our unilateral action releases them from some all of the obligations towards the public service which they contracted in the JD. No doubt HMOCS officers themselves will wish
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