TNAG-2422-FCO40-3524-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 249

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that we would

the lines of the briefing beforehand. Meanwhile I put the Chinese Foreign Minister on notice, during my talks with him on 9 March be approaching them shortly.

8.

As for the details of the proposed compensation/incentive scheme, my officials have confirmed

that they valued the meeting with your officials on

28 February, at which a number of helpful suggestions were discussed. It remains our view that the maximum sum payable

should be calculated on the basis indicated in my minute of

26 February, but we shall reflect further on whether it is

right to put that to HMOCS officers at the beginning of the consultation process. We are also looking further at the

possibility of a different phasing of the payments, both in

terms of whether they offer the most cost-effective way of

meeting our objectives and in terms of how we negotiate with

the HMOCS Association in Hong Kong. Finally, we are

exploring an interesting idea which your officials raised

for devising arrangements which would discourage (even if we

could not prevent) officers at present on contract terms from taking up their right to enrol as HMOCS officers. This

could also have a bearing on the potential maximum cost of

any contingent liability which OD(K) subsequently agrees for sterling safeguards for HMOCS officers.

9.

I am grateful for your agreement that your officials should continue to assist us where they can in refining our proposals. We shall want to take up this offer and in any

case will keep your officials closely informed of our

thinking and of the consultation process with the HMOCS

officers.

10. We shall need some holding line on pensions, pending final decisions. I suggest that officials should sort this

out.

Secretary of State

JIFABG/4

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