TNAG-0694-FCO40-844-Inspection-of-Hong-Kong-Department-1977 — Page 135

Mr Stewart

(HKD K246)

cc: Mr Butler

STAFF IN CONFIDENCE

(DUSS G67G)

Reference.......

Mr Hayes

(CEA

G2A/G)

Mr Beamish (POD CG 010)

ASSIGNMENT OF AN ECONOMIST TO HKD

Following my discussion with you after my return from Hong Kong in December, I agreed to talk to the Chief Economic Adviser (Mr Hayes) on this subject;

I can now report on my talk.

2.

Mr Hayes agreed with me that "bedding out" would be desirable in principle. However, in practice there are problems of matching the limited staff of Economists Department to the work which comes from all parts of the Office. For the present Mr Hayes feels that, because of shortage of staff within Economists Department (we are now 22% under complement) he is still unable to meet your request. The situation should be somewhat eased in the future when new recruits arrive and he is prepared to re-consider the position then.

3.

Furthermore, you may care to note that under Mr Cortazzi's purview there is the joint FCO/ODM DTEU (Dependent Territories Economic Unit) which covers the (declining) remaining dependencies. At present three economists are attached to this unit full time (two on the staff of the FCO and one from ODM) as compared with a part-timer on Hong Kong. If Mr Cortazzi were to give some indication of his priorities for economic advice within the totality of the Dependent Territories, we could try to arrange to match these priorities with an appropriate staffing level. This would, of course, be a matter for discussion with ODM, which has joint responsibility for, and use of, DTEU.

4.

POD has asked me for an indication as to any timing of the move of an economist to HKD so that they can align it in the other moves they have in mind. From the above it can be seen that I cannot provide them with any timing and I would not wish any moves they now plan to be retarded on our account.

5.

In the short term therefore the position is that I personally am available to advise HKD, and am in fact working on its monetary policies for our forthcoming meeting with the Bank of England.

12 January 1977

Dinen Nunin

Adrian Smith G 72A/G

8815

CODE (L-//

STAFF IN CONFIDENCE

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