CSC:05/1
19
CONFIDENTIAL
R
3
IAL My hotmaa
The
I deorfray Howe LC MR
Secretary of State for Foreign Affairs Forelan Commonwealth Of£ ce
King Charles Street
Longan.
SWIA CAH,
19
December 1988
(
N
ތނ
in Camac
--2011
-
HONG KONG: GENERAL COMPENSATION £SHEME
Thank y
Re
^alest
:== YOUr minute ot
ماد
November to Nigel Lawson outlini: Pasures you consider necessary to compensate members of H
verseas Cervice HMOCS: following the transfer
Sovereignty to the Chinese in 1997.
recognise that
It is desirable that sufficient numbers ( HMOCC should stay on in Hong King after 1997 to
adequa: contlaulty
public .3
administration. But
whether deciding further _aducement
necessary, and, 13
if
form so, what inducement would be materially effective are clearly difficu. matters of judgement. However I understand your reasons f: believing that a general compensation scheme for expatria: officers should be drawn up and announced shortly, and that t: scheme should be funded by HMG. I note that you expect it: ta.co: cetween 10 and £20 million over the 10 years from 1997.
As you ave acknowledged, the vote responsibility wou. aturally fall to the FCO/ODA. I think you are right to suggeƐ hat diversion of aid funds to a territory not qualifying for al would not be defensible. But I do not think I can give ar
funds so far in advance undertaking on the source of the requirement. If we commit ourselves to a financial obligation. Ou commitment successors will naturally recognise the force of that But am sure that they will want to agree precisely how to mee it in PES terms in the light of the circumstances then prevailing
C
I should be most grateful to be kept in touch with progress.
I am copying this letter to Chris Patten.
A.
JOHN MAJOR
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