TNAG-2422-FCO40-3524-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 145

HKA 233/1

PASIVAD IN MEGIS

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CONFIDENTIAL

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Mr Ricketts

Mr Burns

Wangaled that

FROM: N J Cox

Hong Kong Department

DATE: 27 April 1992

I would he waHE

cc: Mr Broadbent,

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Economic Advisers

Mr Davies, FED

Mr Wye, RAD

To Hay Kay TA330/iv

HMOCS PENSIONS: MEETING WITH THE GOVERNOR ON 29 APRIL

1. Although HMG undoubtedly have moral commitments towards HMOCS officers affected by the change of sovereignty in Hong Kong, the crucial argument in bringing Ministers to decisions on the subject has been the Governor's advice that failure to do so within a short-time scale would lead to an

exodus of HMOCS officers, including police officers and would erode the morale of those who remained; and that this

would affect the governability of Hong Kong up to 1997 and

of a smooth transition thereafter.

A

2.

We put the Governor on notice last week that we should

like to hear his latest assessment of the consequences of not offering a sterling safeguard for pensions or of further protracted delay before decisions. His remarks to

Mr Goodlad this morning did not offer us any new ammunition about the governability of Hong Kong: his emphasis was on the risk of a vociferous public campaign challenging HMG for reneging on its obligations. He saw a possibility of an application for judicial review but discounted the

possibility of industrial unrest within the civil service or police force.

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CONFIDENTIAL

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