CONFIDENTIAL
obligations to HMOCS officers is an interest of the Government as a whole; and the costs for Britain of a break-down in the Civil Service or Police there would be high.
In the
10. There are drawbacks to proceeding step by step. interests of reducing the costs to the taxpayer and of encouraging HMOCS officers to stay on in Hong Kong, both our compensation and our sterling safeguards proposals are significantly less generous than has been the case with other Dependent Territories. The announcement of proposals only on compensation, with a holding line on the principle of a sterling safeguard, is bound to produce disappointment among HMOCS officers. But the Governor considers that the situation will be manageable and the risks involved less serious than allowing the present uncertainty to drag on. I believe we should accept his judgement.
11. Lord Caithness plans to visit Hong Kong in the week of 1 March. He will be pressed very hard to make an announcement. I enclose the draft of a statement I should like him to be able to make in Hong Kong. I should be grateful to know if you are content.
Foreign and Commonwealth Office
11 February 1992
CONFIDENTIAL
Он
DOUGLAS HURD
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