CIVIL SERVICE ISSUES

Understand that localisation is progressing steadily. directorate is 64.4% local and the senior

The

management/professional level is already 78.7% localised. Overseas officers now comprise about 1.2% of the Civil Service

overall.

Understand that the HKG are considering the points made by the Association of Expatriate Civil Servants about the Government's localisation policy. This is a matter for HKG.

- It is for the Governor to decide who will succeed Sir David Ford as the next Chief Secretary and to advise the Secretary of

State of his decision.

COURT OF FINAL APPEAL

In our view agreement reached with the Chinese (at the Joint Liaison Group in November 1991) on the establishment of the CFA is not inconsistent with the Joint Declaration.

The Hong Kong Government is now preparing draft legislation to set up the CFA. It will then be for the Legislative Council to consider the legislation in due course.

RELATIONS WITH CHINA

Talks are proceeding in a good atmosphere. Content must remain confidential, but there will be no secret deals: any arrangements will have to be passed by LegCo. Co-operation between Britain and China is essential for prosperity of Hong

Kong.

bno.row.NAT

SLM

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