TNAG-2270-FCO40-3269-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1991 — Page 120

Mr. Cox

M

Bunks or No Shop 6/12 Miss Williams Our 6/12

We never supposed that the vix't would be easy

1 on that the absence of HKB representation

was ideal.

Hong Kong Department/FCO

Reference

From: D S FISH

(Ext 3444)

Date: 3 December 1991

cc Mr Kerby

M

6/αü

HKB 233/1

p.a.pls

215

HONG KONG VISIT: HMOCS MATTERS

193

1. As we expected, Hong Kong Telno 3708 indicates that as far as the Hong Kong Government (HKG) are concerned, the issues to be resolved are political rather than financial. This suggests that HKG are going

going to stick to the line that capitalisation is impossible. This will become clear at a very early stage in the visit and if detailed discussions about capitalisation are not a realistic proposition, I repeat the doubts expressed in my minute of 26 November about the wisdom of fielding two people from the Treasury and someone from GAD. Given that local politics will loom so large, it would seem far more desirable that the team should be led by, or at least contain, a representative of Hong Kong Department.

2. We still do not have the promised programme for the visit, but I will record now my concerns about bringing the Treasury and HMOCS officers face to face. As HMOCS officers have seen no sign of progress for several years, it is inevitable that the visit will arouse great expectations. The reports from Hong Kong suggest that HMOCS officers are getting increasingly restless and determined to see some positive developments; if capitalisation has been rejected by the Government, a series of meetings with the Treasury could well be enough to light the touchpaper. The least that HMOCS officers would expect would be a recognition on the part of

of HMG that we have an obligation to look after their interests. ODA and the Diplomatic Wing are clear that there is such an obligation, whereas the Treasury maintain that there is a recipe for the fanning of flames if ever there was

not

-

борис

D S FISH

Overseas Pensions Department

3 December 1991

PS

I have now seen the list of questions which the Treasury have asked you to put to Hong Kong. It is clear from this that they do envisage detailed discussion about capitalisation and that they also expect to discuss the coverage of a compensation/incentive scheme. This should at least make the Hong Kong Government focus on what the Treasury have in mind, and might lead them to rethink their approach to the visit.

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GOVERMENT HOUSE HUNG KUNG.