CONFIDENTIAL
(f)
who for one reason or another, do not opt to serve the
SAR. In addition, Hong Kong have argued that if we
were, for negotiating reasons, to put a significantly later date, there would be a loss of good will and it
would seriously prejudice any consultations. Given
that we still have negotiating room as to how much the
first payment should be and over how many years subsequent payments should be spread, we do not think
conceding this point from the outset (which we were
intending to do anyway at some stage) significantly
affects our bargaining position.
Paragraph 5. This paragraph picks up the points in paragraphs 6 and 8 of the previous draft statement.
(g) Paragraph 6. This paragraph picks up the point made in
paragraph 7 of the previous statement. The Minister has asked why we wish to specify the date of
(h)
1 January 1992 in order to fix the sterling cost of the
scheme. This is for two reasons: first there is some
concern that Hong Kong may need to increase salaries, well above inflation, to retain people. Our fixing the
base now will mean that the cost of the scheme will not
escalate faster than the rate of UK inflation. Second
it has made it easier for us to estimate the cost when
putting the proposals to the Treasury.
Paragraph 7. We have omitted from the statement the
previous thought that the sums of money would be set
aside and would become accessible to the officer
concerned only when he or she retired, resigned or
otherwise left the service of the SAR Government.
had earlier included this because of perceived concerns about Chinese sensitivity. But this would be a
We
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