SECRET
FM FCO
SECRET
TO DESKBY 110030Z HONG KONG
TELNO 462
OF 10183OZ MARCH 92
AND TO DESKBY 11010OZ
PEKING
AND TO IMMEDIATE UKREP JLG HONG KONG
87
84
157253
MDHOAN 1188
TOP COPY Q DIST?
89
HKA 233/1
(85
ра
YOUR TELNO 750, PEKING TELNO 337 AND UKREP JLG TELNO 81: HMOCS: BRIEFING THE CHINESE
1.
WE CONFIRM THAT THE TREASURY HAVE NOT/NOT SOUGHT TO RE-OPEN THE FINANCING OF THE COMPENSATION/INCENTIVE SCHEME. SUBJECT TO PEKING'S DETAILED COMMENTS (NOT YET RECEIVED) AND YOUR AND MR GALSWORTHY'S REACTIONS TO THEM, WE SHALL NOW TRY TO CLEAR A SPEAKING NOTE WITH THE TREASURY ON THE LINES YOU PREFER.
2. OUR LATEST WORKING DRAFT IS IN MIFT. HOWEVER WE ARE UNCLEAR FROM YOUR TUR HOW EXACTLY YOU WISH PARA 5 TO BE WORDED. WE SEE NO PROSPECT OF SECURING TREASURY AGREEMENT TO YOUR ORIGINAL FORMULATION ON STERLING SAFEGUARDS. WE SHOULD ALSO BE GRATEFUL FOR CONFIRMATION THAT PEKING AND UKREP JLG CONSIDER IT BETTER TO MAKE NO MENTION OF THE TRADITIONAL RIGHTS TO RETIRE ON THE CHANGE OF SOVEREIGNTY WITH IMMEDIATE PAYMENT OF PENSION AND TO BE CONSIDERED BY HMG FOR CERTAIN PURPOSES (IE ELIGIBILITY FOR TRANSFER OR PROMOTION TO POSTS IN OTHER TERRITORIES) AS MEMBERS OF HER MAJESTY'S SERVICE. THESE MIGHT COME TO CHINESE EARS AFTER CONSULTATIONS OPEN IN HONG KONG (AS MENTIONED IN YOUR TUR) OR IF THEY WERE TO OBTAIN AND STUDY THE WHITE PAPERS. WE HOPE THE FORMULA ''THE MAIN POINTS WHICH WE CONSIDER RELEVANT IN THE HONG KONG CONTEXT'' WOULD HELP HERE.
3. WE ARE ALSO NOT SURE WHETHER PARA 7 OF THE DRAFT IS YET IN
THE FORM YOU WISH.
4. TO HELP CUT DOWN THE SPEAKING NOTE (PEKING TUR) WE HAVE DELETED PARAS 10 AND 12 OF THE DRAFT IN OUR TELNO 453 BUT WILL TELL THE TREASURY THAT THEY MAY BE USED ORALLY.
5. (PARA 2 OF PEKING TUR) WE CANNOT BE ABSOLUTELY CLEAR ABOUT THE WAY THE SCHEME WILL WORK UNTIL WE HAVE CONSULTED HMOCS OFFICERS. IF WE TIED OURSELVES DOWN IN ADVANCE THERE MIGHT BE A CASE FOR JUDICIAL REVIEW ON THE GROUNDS THAT THE CONSULTATIONS WERE NOT
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