TNAG-2418-FCO40-3520-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 12

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CONFIDENTIAL

56

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DATE: 25 February 1992

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Mr Burns

2618

Mini

PS/Lord, Caithness

Private Secretary

segretary

HONG KONG: HMOCS

Problem

1.

HKA 233/1

RECEIVED IN REGISTRY

INDEX

27 FEB 1992

PA

Sir J Coles

Mr Muir

Mr Kerby, ODA

Miss Brooks, Legal Advisers

A very sensitive subject. The Avery

right to argue

C.S. in right

that HK is

rich but that misses the point this particular. We have a duty to ensure that cul servants whether they

wahed at home or

on

abroad can

retive bere

reason atte pension. < 25/2

The Chief Secretary's unhelpful response to our proposal for an announcement by Lord Caithness in Hong Kong

next week.

Recommendation

2.

That the Secretary of State minute the Chief Secretary explaining why his proposal is unacceptable, offering a "compromise" and suggesting discussion in OD (K) if the Treasury cannot accept it. I submit a draft.

Background and Argument

A 3. The Secretary of State's minute of 11 February proposed that, pending clarification of the feasibility of one option for addressing the sterling safeguards issue, Lord Caithness should announce in Hong Kong next week that we have drawn up a compensation/incentive scheme and will open consultations

NC1ABU/1

CONFIDENTIAL