TNAG-2419-FCO40-3521-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 66

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4. WE DO NOT EXPECT GUO TO OFFER INSTANT REACTIONS. HOWEVER IF GUO SUGGESTS THAT THIS IS A MAJOR MATTER STRADDLING 1997 ON WHICH BRIEFING IS INSUFFICIENT AND THAT THERE SHOULD BE FULL SINO-BRITISH CONSULTATIONS BEFORE ANY FURTHER ACTION IS TAKEN, YOU SHOULD SAY:

''THIS IS FIRST AND FOREMOST A MATTER BETWEEN HMG AND MEMBERS OF HER MAJESTY'S SERVICE. BUT WE ARE HAPPY TO GIVE THE CHINESE GOVERNMENT ADVANCE INFORMATION OF WHAT WE INTEND. MOREOVER IF THE CHINESE GOVERNMENT HAVE VIEWS ON THE MATTER, WE ARE VERY READY TO LISTEN TO THEM''

(WE SHALL NEED TO THINK FURTHER ABOUT HOW TO RESPOND TO ANY SUBSEQUENT CHINESE REQUEST THAT THE MATTER SHOULD BE PUT ON THE AGENDA FOR THE NEXT JLG MEETING AND THAT WE SHOULD NOT OPEN CONSULTATIONS WITH HMOCS OFFICERS UNTIL THE JLG HAS CONSIDERED

IT).

5. IF GUO SUGGESTS THAT THESE ARRANGEMENTS MAY CAUSE DIVIDED LOYALTIES FOR THE OFFICERS CONCERNED AFTER 1997, YOU SHOULD DRAW ON THE FOLLOWING:

''NOBODY SHOULD BE UNDER ANY MISAPPREHENSION THAT THE ARRANGEMENTS TO BE MADE FOR HMOCS OFFICERS WILL IN ANY WAY AFFECT THE DUTY OF THOSE OFFICERS TO GIVE THEIR FULL LOYALTY TO THE HKG UP TO 30 JUNE 1997 AND TO THE SARG THEREAFTER. HMG STAND BY THE CLEAR STATEMENT IN THE JD THAT EXPATRIATE OFFICERS IN EMPLOYMENT AFTER 1 JULY 1997 SHALL BE EMPLOYED ONLY IN THEIR INDIVIDUAL CAPACITY.''

6.

IF GUO RAISES MATTERS CONCERNING HONG KONG CIVIL SERVICE PENSIONS GENERALLY, EG THE PREVIOUS CHINESE IDEAS OF A SET-ASIDE FUND, YOU SHOULD MAKE NO SUBSTANTIVE COMMENT BUT SAY THAT YOU WILL NEED TO REPORT TO HKG. (WE WOULD THEN WISH TO DISCUSS WITH YOU AND HKG HOW BEST TO REPLY.)

7. PLEASE DO NOT AMEND OR SUPPLEMENT THE SPEAKING NOTE OR THE POINTS ABOVE WITHOUT PRIOR REFERENCE TO US. THE ISSUES ARE SENSITIVE HERE. THEY HAVE BEEN THE OBJECT OF EXTENSIVE MINISTERIAL CORRESPONDENCE AND THERE REMAIN FUNDAMENTAL DIFFERENCES OF APPROACH ABOUT THE NATURE OF HMG'S OBLIGATION TOWARDS HMOCS OFFICERS IN RESPECT OF THE STERLING VALUE OF THEIR PENSIONS.

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