Mr Paul (By FAX)
CONFIDENTIAL
Pa
39
From:
J V KERBY
(Extn 0380)
Date:
12 July 1990
CC:
Mr Burns
Mr Stanton
Mr Fish
HONG KONG: COMPENSATION/INCENTIVE SCHEME FOR MEMBERS OF HMOCS
35
I am grateful for a sight of your draft submission on this subject. Mr
Fish will be sending you our detailed comments, but there are certain basic
points which I would like to stress.
2. First, I do urge you to avoid describing what is proposed as a
"general compensation scheme". There is of course a lot of old theology in
this, and your draft briefly sets it out: but the point is that the
theology is very important to members of HMOCS. If you call the scheme a
"general compensation scheme" this will immediately lead the people
concerned to expect HMG to deliver what the submission identifies as far
and away the most expensive option.
3. If I may say so, the recommendation in the draft submission does not
give a clear picture of exactly what Ministers are being asked to endorse.
In particular, it does not identify the specific form of compensation or
incentive scheme proposed, nor the estimated cost.
4. The draft submission says nothing about Sterling safeguards. Yet this
is likely to loom very large in the minds of the civil servants concerned,
who may well regard it as even more important than "compensation" in and
after 1997. The point is of course that the agreement with the Chinese
Government provides for their salaries to go on being paid, but gives no
guarantee whatever that a salary denominated in Hong Kong dollars will
retain its current value. Even if you do not want to put specific
proposals on this to Ministers at this stage, I would suggest that you
should at least alert them to the existence of this major issue.
CONFIDENTIAL
No comments yet.
Private notes are available after approval.