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3.
of greatest importance is the need to secure Treasury acceptance of the principles at stake. We have already agreed in the past on the principle of compensation arrangements, but there remains disagreement on the principle of the sterling safeguard. The question of amendments to the SPOS regulations is likely to be less problematic.
4. The figures are obviously not unimportant but we should try to concentrate on persuading the Treasury to accept the principles. It would be a waste of everyone's time at this meeting to get embroiled in detailed discussion of figures.
meeting.
5. We need to press the Treasury to come clean at this
eg: on their "alternative approaches
We shall almost certainly need to resolve the questions at Ministerial level, so the sooner we end the official-level sparring the better.
65 As Mr Muir has pointed out; we must avoid landing ourselves with any financial responsibility for the compensation and pensions arrangements. Our emphasis must- be on HMG's long-standing obligations, not Hong Kong's
political problem.
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7. If you have time for a quick meeting with Mr. Kerby and Mr Fish immediately before the main meeting, we can arrange
this. Ithink it would be useful.
Qwvillians
E Williams
WADAAL/27
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