CODE 18-77
Reference....
compensation scheme is promulgated, does this, again, weaken
case for not offering a retirement option? [To accept this commitment in respect of Hong Kong could open up a can of worms in respect of other former colonies.1
(e) With regard to consultation with the Chinese, although current thinking is that we would consult, I should be grateful for your view as to whether we have to, under the terms of the JD, or under undertakings reached in the JLG. I would also value your advice as to whether we would be better to consult the Chinese before consulting the staff associations, in parallel or afterwards. I appreciate that this is to a significant extent dependent on our resolve to stick to our proposals. If we envisage making no concessions to the staff, then we can afford to consult the. Chinese first. On the other hand, if we are willing to be (need to be?) flexible with the staff, then the Chinese could at the end of the day accuse us of bad faith, or worse. I note that para 17 of CMND 1193 states "after consultation with the local staff association".
Hill Stame
M V Stone
Hong Kong Department WH 311 270 2651
22 February 1990
CC
Mr
Fish ODA
without
Pensions Dept. Paul
Mr
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