SECRET

062070

MDHIAN 3364

of such officers before the normal date.

We can note that it would not be in the SARG's interest to have to retain those few officers who might have reservations about transferring their loyalty from the Crown to the SAR. The Chinese may be concerned about the financial implications (ie that the SARG will have to pay out pension for a longer period than normal, as well as paying the salary of the officer who replaces the pensioner). We should attempt to argue that there will be minimal if any extra costs. Can CSB give any estimate of the number of officers likely to take early retirement?

8. The Chinese may also be concerned that other members of the public service will campaign to receive the same treatment as HMOCS officers and that this could be destabilising and/or expensive. We should seek to reassure them as best we can.

9. The SPOS arrangements are a domestic UK matter which have nothing to do with the change of sovereignty, and we see no need to brief the Chinese about the adjustments to them.

10. We should be happy to comment on a draft speaking note in due

course.

MCLEAN

YYYY

DISTRIBUTION

38

ΜΑΙΝ

38

OVERSEAS

.HER MAJESTY'S

.CIVIL SERVICE RESTRICTED

HKD

LEGAL ADVISERS//MISS BROOKS

FED

NEWS D

RAD//MR WYE

RMD

RFD

OVERSEA PENSIONS/ODA//MR FISH

PS

PS/MR GOODLAD

PS/PUS

SIR J COLES

MR FREEMAN

MR HUM

MR MUIR

NNNN

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