SECRET
нка 233/1
60
MDHIAN
SECRET
FM HONG KONG
TO IMMEDIATE FCO
TELNO 605
OF 271138Z FEBRUARY 92
INFO PRIORITY PEKING, UKREP JLG HONG KONG
TOP COPY ~:~T?
PERSONAL FOR RICKETTS, HKD, FROM GOVERNOR
PEKING PERSONAL FOR AMBASSADOR
UKREP JLG PERSONAL FOR GALSWORTHY
55
YRTELNO 302: HMOCS
Pa
2012
1. WE AGREE THAT THE TREASURY PROPOSAL TO ACCEPT IN PRINCIPLE A COMPENSATION SCHEME AND SPOS AMENDMENT, IN RETURN FOR NO FURTHER ACTION BEING TAKEN BY HMG ON STERLING SAFEGUARDS, IS UNACCEPTABLE. IT WOULD BE WHOLLY WRONG TO ENTER INTO A COMMITMENT TO DENY HMOCS OFFICERS IN HONG KONG STERLING PENSION PROTECTION ON SIMILAR LINES TO THAT ACCORDED TO THEIR HMOCS COLLEAGUES IN OTHER TERRITORIES. WE HAVE NO OBJECTION TO STERLING SAFEGUARDS BEING PUT ON A SEPARATE AND SLIGHTLY SLOWER TRACK: BUT WE CANNOT COMMIT OURSELVES TO KEEPING THEM OUT OF THE FINAL HMOCS PACKAGE.
2. I TRUST WE WILL NOT/NOT NOW FIND OURSELVES CAUGHT BETWEEN TREASURY TACTICS, A COMING ELECTION AND THE PENSION OPTION DEADLINE. IT IS IMPORTANT THAT LORD CAITHNESS SHOULD MAKE AN ANNOUNCEMENT ON THE COMPENSATION SCHEME DURING HIS VISIT TO HONG KONG NEXT WEEK IF AT ALL POSSIBLE.
3. WE ARE CONTENT WITH THE GENERAL LINE OF YOUR FAXED DRAFT STATEMENT, AND HAVE TWO MINOR COMMENTS:
(A) WE WOULD PREFER TO SEE THE THIRD SENTENCE OF PARAGRAPH 4 OF THE DRAFT STATEMENT AMENDED TO READ 'THE GOVERNMENT HAVE NOW FORMULATED A PROPOSAL FOR A GENERAL COMPENSATION SCHEME WITH AN INCENTIVE ELEMENT'.
(B) WE HAVE DOUBTS ABOUT WHETHER THE SECOND AND THIRD SENTENCES OF PARAGRAPH 5 ARE REALLY HELPFUL OR NECESSARY AT THIS STAGE FOR HONG KONG CONSUMPTION, ALTHOUGH WE APPRECIATE THAT YOU MAY NEED THEM TO OBTAIN TREASURY AGREEMENT.
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