HICC 2.33
233/1
CONFIDENTIAL
R.
130 1. Mr Fatman 2. PA
N
Treasury Chambers Partament Street. SWIP BAG
++KW
The Rt Hon Sir Geoffrey Howe QC MP Secretary of State for Foreign Affairs Foreign & Commonwealth Office
King Charles Street
London.
SW1A 2AH ›
.CP:
37
Gl
Me liten
MITUR
December 1988
M
•
HONG KONG: GENERAL COMPENSATION SCHEME
34
26/12
Thank you for your minute of 24 November to Nigel Lawson outlining the measures you consider necessary to compensate members of Her
(HMOCS) Majesty's Overseas Service
the transfer sovereignty to the Chinese in 1997.
necessary,
following
of
I recognise that it is desirable that sufficient numbers of HMOCS should stay on in Hong King after 1997 to ensure adequate continuity in public administration. But deciding whether a further inducement is
and, if so, what form of inducement would be materially effective are clearly difficult matters of judgement. However I understand your reasons for believing that a general compensation scheme for expatriate officers should be drawn up and announced shortly, scheme should be funded by HMG. I note that you expect it to:cost between £10 and £20 million over the 10 years from 1997.
that the
As you have acknowledged, the vote responsibility would
aturally fall to the FCO/ODA. I think you are right to suggest hat diversion of aid funds to a territory not qualifying for aid would not be defensible. But I do not think I can give any
SO far undertaking on the source of the funds
in advance of requirement. If we commit ourselves to a financial obligation our successors will naturally recognise the force of that But I am sure that they will want to agree precisely how to meet it in PES terms in the light of the circumstances then prevailing.
commitment.
I should be most grateful to be kept in touch with progress.
I am copying this letter to Chris Patten.
JOHN MAJOR
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