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4. ALTHOUGH WE HAVE NOT YET HAD THE NOTE ON THE ASSESSMENT OF LOA OUR CONCERN IS THAT WE SHOULD WORD THE M O U IN SUCH A WAY THAT IT.
MOU COVERS ALL ASPECTS OF THE AGREEMENT THROUGHOUT ITS LIFE. WE HAVE NOTED YOUR ASSESSMENT THAT IN THE SHORT TERM YOU DO NOT EXPECT BASIC PAY TO RISE MUCH MORE QUICKLY THAN COSTS IN HONG KONG. ALTHOUGH THIS IS REASSURING IT IS ONLY AN ASSESSMENT AND WITH AN AGREEMENT WHICH WILL WE HOPE LAST 7 YEARS OR MORE IT IS IMPORTANT TO INCLUDE IN IT MEANS OF REDUCING THE EFFECT OF
DIFFERENTIAL INFLATION,
5. WE HAVE ALWAYS TAKEN THE POSITION THAT WE SHOULD TRY TO AVOID PROBING MATTERS WHICH ARE STRICTLY RELATED TO THE MANAGEMENT ETC. OF THE GARRISON WHICH ARE THE RESPONSIBILITY OF MOD AND C B F. BUT LOCAL RATES OF LOA/FSA ARE A FEATURE OF THE PAY STRUCTURE PECULIAR TO HONG KONG AND REPRESENT 12% OF THE COST OF THE GARRISON. ALTHOUGH A RISE. IN BASIC PAY RATES ALONE MAY NOT BE A SUFFICIENT CONDITION FOR A LOA ADJUSTMENT, WE MUST BE ASSURED THAT IT WILL RESULT IN A REVIEW AND, IF APPROPRIATE, AN ADJUSTMENT. IF YOU AGREE WITH THIS PROPOSAL THEN PARAGRAPH @ OF OUR TELEGRAM
O 1178 WILL NEED AMENDMENT BY DELETING THE WORDS TO ADJUST WITHIN 3 MONTHS' AND SUBSTITUTING THE FOLLOWING PUNCTUATION AND WORDS '', WITHIN 3 MONTHS TO REVIEW AND, IF APPROPRIATE, ADJUST THE RATES OF....
6. PLEASE ADVISE DATE AND BAG NUMBER IN WHICH NOTE ON LOA WAS
DESPATCHED.
7. WHEN WILL YOU BE IN A POSITION TO REPLY TO OUR TELEGRAM NO 1159 OF 17 NOVEMBER? WE WILL TELEGRAPH PROPOSALS ON WORKS SERVICES
AND U.K. EQUIPMENT SHORTLY.
ROBERTS
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COPIES TO:
MR ANDREW AUS MOD
MR WARD DS6 MOD
MR HANSFORD TREASURY MR BRYERS CABINET OFFICE MR AGGLETON PSA DOE
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