TNAG-1329-FCO40-1756-Future-of-Hong-Kong-test-of-the-acceptability-of-the-Joint-D-1984 — Page 95

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Keith Morris Esq

DIRI

MON

HM Treasury

Parliament Street London SWIP 3AG

Switchboard 01-233 3000 Direct Dialling 01-233.4354

Mrs. Macgelger

Pilose pussue xult 17 August, 1984

ccrtus. Khan (HKL;

My. But, tal;

Personnel Policy Department Foreign and Commonwealth Office

LONDON

SW1A 2AH

Dear Mrossis

HONG KONG: TEST OF ACCEPTABILITY

Many thanks for your letter of 16 August.

2. As I have already said to Mrs Macgregor on the telephone, I can agree to your paying both Mr Justice Li and Sir Patrick Nairne the fees you propose, which would amount to about £143 a day to each. I fully take the point that it would be most undesirable if both Monitors did not receive the same fee and I recognise the very special nature and importance of the jobs they will be required to do.

3. I note that you will find all the required expenditure within present cash limits. My agreement is of course subject to that condition.

4. There is one complication. The rules for abating the pensions of retired civil servants apply to fee-paid as well as to salaried employment. You will need to look at the figures to see if Sir Patrick Nairne's pension will have to be abated in consequence of his fee. I am afraid that there is no way of avoiding this, as it seems plain that the reality is that he will be employed under a contract of service, on which (subject to the arithmetic) the abatement rules bite. No doubt he will be aware of this position it would perhaps be wise to make sure of that and it should not hold up settling the appointment with him and making the announcement.

Yours sinceuty

lete

P G F DAVIS

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