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Reference
CONFIDENTIAL
HKA 233/1
From: D S FISH
(Ext 3444)
Date: 4 March 1992
126
Mr Nigel Cox
Hong Kong Department/FCO
INCENTIVE/COMPENSATION: HONG KONG
1.
66
Thank you for sending me a copy of your telno 372 following our meeting with the Treasury on 28 February.
2. Overall I thought that the discussion with the Treasury went as well as we could have expected. They did not dissent from the rationale behind what we have in mind and, as your telegram indicates, concentrated on possible ways of reducing the overall cost. They were clearly a little concerned that we would be entering into consultation with so little room for manoeuvre, and, as you know, this has been very much a concern of mine for some time. On the assumption that the consultation team will be you and me, we do need to spend some time mapping out our negotiating strategy. It would be useful to have a Hong Kong Government input to this, but we will have to handle their involvement very carefully, for obvious reasons.
3.
On the question of removing contract officers from the equation, I hope that the Hong Kong Government do not regard paragraph 5 of your telegram as the starting gun for a race to produce an inducement package funded by HMG. It will be very difficult to persuade the Treasury that this is an area where the Hong Kong Government should not meet any costs involved. The divisiveness argument will not apply to contract officers - all of whom they could treat the same way. When we were in Hong Kong in December we were given the distinct impression that the Hong Kong Government expected very few contract officers to transfer to permanent and pensionable terms and thus to HMOCS for the reasons set out in your telegram and, more importantly, because of the cost to the individuals. It seems to me that only clear evidence of the prospect of significant numbers of contract officers joining HMOCS would persuade the Treasury that it would be sensible to contribute to an employment package for contract officers. You may think it useful to make this point to Hong Kong.
D S FISH
quç
Overseas Pensions Department
4 March 1992
CONFIDENTIAL
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