TNAG-2419-FCO40-3521-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 125

SECRET

143476

MDHIA 293

THE ARGUMENTS FOR DEALING SEPARATELY WITH THE VARIOUS ELEMENTS OF THE PACKAGE, THE CHINESE ARE UNLIKELY TO BE ABLE TO COMMENT DEFINITELY ON ANY INDIVIDUAL PART OF THE DEAL BEFORE THEY CAN SEE

THE WHOLE PICTURE.

G) PARA 7: WE ARE NOT CONVINCED THAT IT IS NECESSARY TO INTRODUCE DETAILS ON POSSIBLE ENTITLEMENTS AT THIS STAGE, PARTICULARLY SINCE THE FIGURES STILL SEEM TO BE VAGUE. WE WOULD SUGGEST OMISSION OF THE 4TH SENTENCE AND AMENDMENT OF THE 5TH TO READ 'PART OF EACH

OFFICER'S ENTITLEMENT WILL BE PAYABLE AS COMPENSATION FOR THE REMOVAL OF THE SECRETARY OF STATE'S AUTHORITY IN 1997: AND THE OTHER PART AS AN INDUCEMENT

H) PARA 8: AGREED.

.

3. WE FIND IT DIFFICULT TO DECIDE WHETHER TO MENTION THE TRADITIONAL RIGHT TO RETIRE ON CHANGE OF SOVEREIGNTY. IF THIS

RIGHT IS LIKELY TO BECOME AN ISSUE IN DISCUSSIONS BETWEEN MEMBERS OF HMOCS IN HONG KONG AND HMG ON THE COMPENSATION SCHEME, OUR INSTINCT WOULD BE TO MENTION IT IN THE FIRST APPROACH TO THE CHINESE. PRESUMABLY THIS RIGHT WOULD BE ONE FACTOR WHICH SUCH CIVIL SERVANTS WOULD TAKE INTO ACCOUNT WHEN EVALUATING THE MATERIAL INDUCEMENTS TO REMAIN. OMISSION IN THE FIRST APPROACH FOLLOWED BY A NEED TO REFER TO IT LATER COULD COMPLICATE BRIEFING THE CHINESE

AND GIVE RISE TO SUSPICION.

MCLAREN

YYYY

ΜΑΙΝ

26

HKD

FED

NEWS D RMD

ADDITIONAL

3

LEGAL ADVISERS//MISS BROOKS

CDA/MR KERBY

NNNN

DISTRIBUTION

29

PS/LORD CAITHNESS

SIR J COLES

MR BURNS

ODA//MR FISH

PAGE

2

SECRET