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General Election. Mr Cox will be in Hong Kong until early next week, and could take action on 7 April. We are not in a position yet to start detailed discussions. Mr Cox would
present the statement but not get into negotiations.
4.
Lord Caithness has commented on earlier drafts of the
statements. Mr Fifoot has now made suggestions for changes principally designed to make clearer the difference between the first payment and subsequent payments and to remove certain risks he saw in the drafting of the earlier version. In the light of all these comments, we have redrafted the
statement in consultation with ODA.
5. On Mr Fifoot's advice, we have described the scheme as "providing elements of compensation and incentive". In view of the Minister's wish to avoid the word "incentive", given possible Chinese objections, we have looked for
alternatives. But the Minister used the formula "elements of incentive and compensation" in his letter to the Chairman
of the HMOCS Association. Mr Fifoot is concerned that
referring to the scheme as only one involving compensation could leave us exposed. It is highly debatable whether the payments made subsequent to the first can be described, or
would be generally accepted, as compensatory. The individual concerned has to do something more to accept
service in the SARG - to obtain it. With regard to Chinese sensitivities, UKRep JLG has already handed over a statement which says "payments under the compensation scheme will be phased over a period from 1997 in a way which provides an inducement to stay". The Chinese have not reacted to this. It does not, therefore, look to be a major issue for them.
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6. The other main changes to the statement follow from Mr Fifoot's advice that, although there is no way of
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