TNAG-1329-FCO40-1756-Future-of-Hong-Kong-test-of-the-acceptability-of-the-Joint-D-1984 — Page 70

។

Mr Marshall,

Finance Department

CONFIDENTIAL

MKK04016

RECEIVED IN 2.

-9 AUG 1984

FROM: A C Galsworthy, HKD

DATE:

7 August 1984

cc:

Sir P Cradock

Mr Morris, PPD

Mr Masefield, PSD

(29)

PA

*JAK 23/2

teken

FUTURE OF HONG KONG: TEST OF ACCEPTABILITY:

IMPLICATIONS

1.

FINANCIAL

I understand that Mr MacInnes has now passed to you his copy of my submission of 3 August, which dealt with the arrangements that will be made to test the acceptability in Hong Kong of any agreement reached with the Chinese Government on the future of the territory.

In the time available to us for the preparation of the submission I

feat that it was not possible to follow the prescribed procedure of clearing with you the passage in the submission dealing with the financial implications of what was proposed. Our Departments

however in contact over the preparation of the submission.

the submission itself makes quite clear that our preliminary note on

the financial implications would need

need to be discussed in more detail

with yourselves.

were

Moreover

2. The position now is that the Secretary of State has now agreed

to the main recommendations in paragraphs 7 to 9 of the submission, namely that HMG should appoint and pay the members of the monitoring

team; and that (subject to Treasury approval) they should both be

paid the same fee, based on the current salary of the proposed Hong Kong monitor who is a Hong Kong Justice of Appeal.

3. I should be grateful if you could take these decisions into

account in considering the statement of financial implications

which was contained in an annex to my

submission. (I attach a

further copy for ease 0 f re eference). We have covered all the

expenditure that we can foresee. I have the following additional

comments:

See (38)

(i) Fees. The background to the calculations is explained in para

CONFIDENTIAL