TNAG-2419-FCO40-3521-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 128

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SECRET

ZCZC

SECRET

FM FCO

TO IMMEDIATE PEKING

TELNO

OF 11110OZ MARCH 92

AND TO IMMEDIATE UKREP JLG HONG KONG, HONG KONG

HMOCS: BRIEFING THE CHINESE

IMMEDIATE

1. All agree that we should seek to inform the Chinese of what

we have decided rather than to engage in consultation with them

about our proposals. However, whatever the reasons for our

decisions (obligation, incentive to continuity etc), the payment

by HMG of up to pounds 40 million to Hong Kong public servants

over a number of years beginning in 1997 is surely a major Hong

Kong matter straddling 1997. Grateful your views on how we

should respond to any Chinese disposition to argue that a

refusal to consult them on these is in breach of the clear

commitments which Ministers gave them last year, both privately

and in public?

HURD

YYYY

MAIN

HONG KONG AGREEMENT RESTRICTED

NNNN

NJCAAX/TG

HKD

N J COX

270 2650