TNAG-2417-FCO40-3519-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 175

SECRET

FM HONG KONG

3

TO IMMEDIATE FCO

TELNO 94

SECRET

& Miss Brooks, Legal Adusers

Pl see para 9. Is there any way the courts cd make a declarabon of the kind envisaged AM

BW 1415 © Pass

Moo

1411

14%,

OF 10110OZ JANUARY 92 Ass William ok to files AM

§ Enter (Annex

INFO ROUTINE PEKING, UKREP JLG HONG KONG

PERSONAL FOR RICKETTS, HKD FROM GOVERNOR. PEKING PERSONAL FOR AMBASSADOR.

UKREP JLG PERSONAL FOR PAUL

ANNEX331

C(HK8233/1

1991

ANNEX (HKB233/1)

Δ

1991

YOUR TELNOS 2204 AND 2205: HMOCS MATTERS.

-

Ам

HKA 233/1

cli

SEVEN

7

170561 MDHIAN 8766

♡ Сори O Copen the Burns

твой (3) Mr Joxer

Some odd points here. Paren I is a plebiterate?) Misunderstanding: M. Burns' telegram Proposed including Compensation - sunday as an

option

امه :

preference.

Per book again at sofs briefing in light of His.

1 I AM GLAD WE ARE AGREED THAT IT IS BEST TO GO FOR A DECISION ON THE COMPENSATION SCHEME ONLY, DESPITE THE LIKELY OPPOSITION FROM THE TREASURY. I FEEL SURE THIS IS RIGHT. MY STRONG PREFERENCE CONTINUES TO BE TO LEAVE STERLING SAFEGUARDS TO A LATER DAY, ALTHOUGH THEY TOO WILL NEED TO BE ADDRESSED AT SOME STAGE. CONFINING OURSELVES TO THE GCS COULD ALSO HAVE THE BENEFIT THAT IT WOULD NOT INVOLVE HMG ACCEPTING A CONTINGENT LIABILITY FOR HONG KONG PENSIONS (PART 2 OF FIRST TUR).

2. A DECISION ON THE GCS SHOULD HOWEVER BE ACCOMPANIED BY THE REVISION OF SPOS ARRANGEMENTS WITH EFFECT FROM 1 APRIL 1992. THIS HAS BEEN WITH ODA FOR SOME TIME, BUT HAS BEEN HELD PENDING DECISIONS ON STERLING SAFEGUARDS. WE UNDERSTAND THAT IT COULD BE IMPLEMENTED QUICKLY AND IS NOT TOO EXPENSIVE.

3. I ACCEPT THAT YOUR PAPER SHOULD ADDRESS THE CONSEQUENCES OF MINISTERS REACHING NO DECISION ON THIS ISSUE. I THINK YOU WOULD BE WRONG, HOWEVER, TO CONSIDER IN THIS CONTEXT WHAT HKG MIGHT THEN DO TO RETAIN KEY PERSONNEL, FOR THREE REASONS (WHICH APPLY TO BOTH THE SCENARIOS IN PARAS 3 AND 4 OF FIRST TUR):

(A) THE JUSTIFICATION FOR A COMPENSATION SCHEME ARISES FROM THE LOSS OF THE SECRETARY OF STATE'S PROTECTION UPON THE TRANSFER OF SOVEREIGNTY IN 1997. THE PRINCIPLE IS A CONSTITUTIONAL ONE OF LONGSTANDING. RETENTION OF KEY STAFF IS A SECONDARY ISSUE, ALBEIT AN IMPORTANT ONE. IT EXPLAINS WHY WE HAVE DECIDED ON A PARTICULAR FORMAT THAT WE HOPE WILL RETAIN STAFF AFTER 1997, BUT IT IS NOT THE REASON FOR THE SCHEME ITSELF.

(B) IT WOULD BE WRONG IN PRINCIPLE TO TRY TO DISTINGUISH BETWEEN,

PAGE

SECRET

1

chelle

14/