PERSONAT ANNE
ANNEX A·
CONFIDENTIAL
178
167611 MDHOAN 4776
CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 2007
OF 14180OZ NOVEMBER 91
FICE. 233 / 1
391
Bew
INFO PRIORITY PEKING, UKREP JLG HONG KONG
TOP COPY Q DIST?
PERSONAL FOR GOVERNOR FROM BURNS, AUSS
PEKING PERSONAL FOR AMBASSADOR OR CHARGE
UKREP JLG PERSONAL FOR MR GALSWORTHY
HMOCS ARRANGEMENTS
SUMMARY
1. ADVANCE WARNING THAT WE SHALL BE ASKING YOU TO LOOK AGAIN AT PRE-1997 CAPITALIZATION OF HMOCS PENSIONS.
DETAIL
2. I CHAIRED A MEETING WITH TREASURY AND ODA ON 12 NOVEMBER TO TRY TO TAKE FORWARD THE PROPOSALS WE TABLED IN AUGUST FOR HMOCS COMPENSATION, STERLING SAFEGUARDS AND SPOS AMENDMENTS. THANKS TO YOUR EXPERTS' NUMEROUS INPUTS, OUR PROPOSALS WERE DETAILED AND CAREFULLY CONSIDERED. WE EMPHASISED THAT WE HAD NOT BUILT IN NEGOTIATING FAT: THE PROPOSALS REPRESENTED WHAT WE BELIEVED TO BE THE MINIMUM PACKAGE CAPABLE OF MEETING HMG'S OBLIGATIONS TO HMOCS MEMBERS AND OF PERSUADING THEM, OR MOST OF THEM, TO CONTINUE IN SERVICE DURING THE CRITICAL YEARS BEFORE AND AFTER 1997.
3. THE TREASURY TOOK A TOUGH LINE. THEY DENIED THAT THERE WAS ANY STATUTORY OBLIGATION TO PROVIDE COMPENSATION OR ANY BINDING PRECEDENT FOR DOING SO IN RESPECT OF HONG KONG. THEY ACKNOWLEDGED THAT MINISTERS HAD EARLIER AGREED ON POLITICAL GROUNDS THAT THERE SHOULD BE AN INDUCEMENT SCHEME, BUT NOTED THAT THIS WAS ORIGINALLY ON THE ASSUMPTION THAT HKG WOULD FOOT THE BILL. MOREOVER THEY THOUGHT THAT OUR PROPOSALS WERE TOO INDISCRIMINATE AND TOOK NO ACCOUNT OF THE FACT THAT HONG KONG CIVIL SERVANTS WERE WELL PAID AND KNEW THE POLITICAL SCORE WHEN THEY TOOK THE JOB. OUR PROPOSALS PROVIDED A GENERAL BENEFIT RATHER THAN TARGETING THE PARTICULAR INDIVIDUALS WE WANTED TO STAY ON IN HONG KONG THROUGH 1997. THEY ALSO THOUGHT THAT A LESS COSTLY SCHEME COULD MEET THE REQUIREMENT. AND THE TIMING OF ANY ANNOUNCEMENT WAS A MATTER FOR TACTICAL
1
PAGE CONFIDENTIAL
No comments yet.
Private notes are available after approval.