TNAG-2270-FCO40-3269-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1991 — Page 21

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MDLIAN 4151

CONSULTANT WILL BE IN LONDON FROM 20 JANUARY AND HE AND SHIPLEY WOULD BE PLEASED TO MEET THE TREASURY REPRESENTATIVES ON 21 JANUARY. (20 JANUARY IS ALSO A POSSIBILITY IF 21 JANUARY IS

INCONVENIENT).

WAY FORWARD.

9.

WE RELUCTANTLY ACCEPT THAT THERE IS NOW LIKELY TO BE NO

MOVEMENT BEFORE THE HMOCS ASSOCIATION MEETS ON 14 JANUARY. THE

TREASURY REPRESENTATIVES ARE CORRECT IN SAYING THAT THE

ASSOCIATION ITSELF IS NOT EXPECTING ANY EARLY ANNOUNCEMENT. BUT

THIS DOES NOT NECESSARILY MEAN THAT THE ASSOCIATION WILL SIT BACK

AND DO NOTHING UNTIL THEY HEAR FROM HMG. WE OF COURSE WILL D OUR BEST TO PERSUADE THEM TO WAIT A LITTLE LONGER, BUT CAN GIVE NO GUARANTEE THAT WE SHALL BE SUCCESSFUL.

10. WE THEREFORE CONTINUE TO SEE MERIT IN PRESSING AHEAD WITH

THE COMPENSATION ARRANGEMENTS. WE AGREE THAT THESE ARE LIKELY TO FALL WELL SHORT OF THE EXPECTATIONS OF HMOCS MEMBERS, BUT IT DOES NOT NECESSARILY FOLLOW THAT THEY WILL FAIL TO BUY US SOME TIME. HMOCS MEMBERS WILL AT LEAST HAVE SOMETHING CONCRETE TO EXAMINE AND DISCUSS, AND THE QUESTION OF STERLING SAFEGUARDS MAY BE PUSHED INTO THE BACKGROUND FOR A WHILE. MOREOVER, IF THE COMPENSATIONS ARRANGEMENTS ARE UNPOPULAR, IT MAY BE BETTER TACTICALLY TO LEAVE STERLING SAFEGUARDS TO A LATER STAGE WHEN THEY CAN BE PRESENTED AS A FURTHER GESTURE BY HMG.

11.

I LOOK FORWARD TO SEEING THE PAPER REFERRED TO IN PARA 7(IV) OF TUR. WE WOULD BE PLEASED TO PROVIDE AN INPUT. IF TIME PERMITS, WE MIGHT DISCUSS THIS PROBLEM BRIEFLY WHEN YOU STOP OVER IN HONG KONG WITH LORD CAITHNESS ON THE NIGHT OF 7/8 JANUARY.

WILSON

YYYY

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