TNAG-2417-FCO40-3519-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 231

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FCO and Treasury Ministers.

5.

I attach a preliminary draft of this paper. It has not yet been cleared with the Treasury or ODA, and needs more refinement as well as work on the commercial loan option, but it does at least begin to pull the arguments together.

6.

In discussion with the Governor, I suggest that the Minister's objective should be to leave him in no doubt that

we face a hard slog in Whitehall on this issue, and that given the domestic economic background, it will be very hard indeed to persuade the Treasury to accept a contingent liability for HMOCS pensions. It is, therefore, vital that HKG should look creatively at all the options, including the commercial loan idea, and also begin to clear their minds on

what they would do if no agreement can be reached on a package for HMOCS officers. I have included these points on

the checklist.

Moso for

PF Ricketts

This all needs further work. I have tapt- and would be happy to disiers further

a copy teha

with the Minister

indeed some advice on the

political handling would be very welcome. WHAT we need from HKG is a clear presentations of how

нката they would go about getting Leges to accept- responsibility, 10 that- Ministers can judge the

сяра relative painotions of hans 3/;

BUGAFV/4

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