TNAG-1874-FCO40-2665-Relations-between-Hong-Kong-and-other-British-Dependent-Terr-1989 — Page 82

MANAGEMENT IN CONFIDENCE

19.

The standard FCO system (COLA) should be used for setting

allowances in accordance with local conditions. Allowances should

be set at the next round of Inspections (or if necessary by a special Inspection) If local governments contend that "their " Governors warrant special allowances (eg enhanced entertainment allowance), this should be firmly discouraged. If local governments insist, it should be made clear that in that case HMG wil1 not

contribute either to such enhanced allowanes or to any other

allowances/frais.

20.

At present local governments meet the full costs of salaries

and allowances for Governors and DS support staff in Bermuda and the

Caymans and should continue to do so.

21.

In the Falklands, we should seek FIG agreement to meeting the

full costs of the Governor's salary and allowances (though not those

of the Governor's DS support staff).

MANAGEMENT IN CONFIDENCE