cst.ps/11jm19.12
HKC 233/
CONFIDENTIAL
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1.vcl Mr Fatman
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2. PA
TARY TO
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Treasury Chambers. Parliament Street, SWIP BAG KW
Shan
The Rt Hon Sir Geoffrey Howe QC MP
Secretary of State for Foreign Affairs Foreign & Commonwealth Office
King Charles Street
London
SW1A 2AH ›
* P
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Mr. 12. Den
M. Ghos
اعات آن ۵۶۰
December 1988
Mr. Crabbie Fier:
c-20n
HONG KONG: GENERAL COMPENSATION SCHEME
134
Thank you for your minute of 24 November to Nigel Lawson outlining the measures you consider necessary to compensate members of Her Majesty's Overseas Service (HMOCS) following the transfer of sovereignty to the Chinese in 1997.
I recognise that it is desirable that sufficient numbers of HMOCS should stay on in Hong King after 1997 to ensure adequate continuity in public administration. But deciding whether a further inducement is necessary, and, if So, what form of inducement would be materially effective are clearly difficult matters of judgement. However I understand your reasons for believing that a general compensation scheme for expatriate officers should be drawn up and announced shortly, and that the scheme should be funded by HMG. I note that you expect it to cost between £10 and £20 million over the 10 years from 1997.
aid
As you
have acknowledged, the vote responsibility would aturally fall to the FCO/ODA. I think you are right to suggest :hat diversion of aid funds to a territory not qualifying for would not be defensible. But I do not think I can give any undertaking on the source of
funds So far in advance of requirement. If we commit ourselves to a financial obligation our successors will naturally recognise the force of that commitment. But I am sure that they will want to agree precisely how to meet it in PES terms in the light of the circumstances then prevailing.
I should be most grateful to be kept in touch with progress.
I am copying this letter to Chris Patten.
JOHN
JOHN MAJOR
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