TNAG-2099-FCO40-2988-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 101

CONFIDENTIAL

CONFIDENTIAL

FM UKREP JLG HONG KONG

TO IMMEDIATE FCO

TELNO 168

OF 210908Z JUN 90

INFO IMMEDIATE PEKING, HONG KONG

8

RECEN

DE.

Has 93.116

27 Jun 1990

057727

MDHIAN 5821

diy hele

TOP COPY DIST?

577

YOUR TELNO 1155 TO HONG KONG: GENERAL COMPENSATION SCHEME:

CONSULTING THE CHINESE

1 WE HAVE DISCUSSED THIS WITH HKG, AND THE FOLLOWING REFLECTS OUR

JOINT VIEW.

2. WE AGREE THAT IT WOULD BE WISE TO ALLOW MORE TIME FOR CLEARING THE CHINESE HURDLE THAN WAS ENVISAGED IN JANUARY.

3. HOWEVER, WE DO NOT THINK THAT IT WOULD BE TACTICALLY WISE FOR US TO START BY PROPOSING THIS SUBJECT FOR DISCUSSION AS PART OF THE FORMAL AGENDA OF A PLENARY SESSION OF THE JLG. DESPITE WHAT WE SAY ABOUT THE BASIS OF CONSULTATION IN THE JLG, THE CHINESE WOULD INSTINCTIVELY SEE THIS AS IMPLYING THAT IT IS A MATTER WHICH WE REGARD AS BEING FOR JOINT DECISION. IN FACT, UNLIKE THE PREVIOUS LIMITED COMPENSATION SCHEME, THIS SCHEME CONCERNS PAYMENTS MADE BY HMG, NOT HKG, TO MEET ITS OWN OBLIGATIONS TO MEMBERS OF HMOCS. WE THINK THAT EVEN THE CHINESE WILL APPRECIATE THAT, FORMALLY SPEAKING, THIS IS AN INTERNAL MATTER FOR HMG.

:

4. ON THE OTHER HAND, WE AGREE THAT IT WOULD NOT BE SENSIBLE SIMPLY- TO INFORM THE CHINESE. SINCE IT WILL INVOLVE THE MAKING OF PAYMENTS BY HMG TO CIVIL SERVANTS OF THE SARG, WE SHOULD RECOGNISE THAT THE CHINESE HAVE A LEGITIMATE INTEREST IN IT AND CONSULTATION SHOULD BE -REAL. WE THEREFORE THINK THAT WE SHOULD, AS YOU PROPOSE, SEEK A MEETING AT A SUITABLE MOMENT (THE SOONER THE BETTER) AND PUT A PAPER TO THE CHINESE, WHICH WE SHOULD EXPLAIN FULLY. WE SHOULD ASK THEM FOR A RESPONSE TO IT, BUT SHOULD NOT OURSELVES PROPOSE THAT IT BE PLACED ON THE AGENDA OF JLG XVI. IT IS NOT UNLIKELY THAT THE CHINESE THEMSELVES WILL PROPOSE THIS, AND IF THEY DO WE WOULD NOT SEEK TO RESIST IT. BUT IN AGREEING WE WOULD WANT TO MAKE CLEAR TO THEM THAT THE OBLIGATIONS OF HMG TO HMOCS WERE AN INTERNAL MATTER FOR US AND THAT WHILE WE WOULD WANT TO DISCUSS THE MATTER FULLY WITH THEM WE WOULD IN THE END HAVE TO DECIDE OURSELVES HOW THOSE OBLIGATIONS SHOULD BE MET. TACTICALLY WE THINK THAT THIS WILL STRENGTHEN OUR POSITION IN DISCUSSING THIS SUBJECT.

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CONFIDENTIAL