CONFIDENTIAL
174451 MDHIAN 440
9. WE SAID AGAIN THAT WE WOULD FULLY REPORT THE VIEWS WHICH THE TEAM HAD EXPRESSED. HOWEVER WE COULD OFFER NO ASSURANCE THAT MINISTERS, HAVING CONSIDERED THEM, WOULD NOT THEN DECIDE TO PROCEED WITH A BENEFITS SCHEME BEFORE TAKING DECISIONS ON STERLING SAFEGUARDS: NOR COULD WE OFFER ANY ASSURANCE THAT, IF THEY DID SO, THEY WOULD AGREE TO HOLD FURTHER CONSULTATIONS WITH THE ASSOCIATION BEFORE SETTLING THE SCHEME. THIS WAS THE ASSOCIATION'S OPPORTUNITY TO SPEAK. WE NOTED THAT THEY HAD ALREADY COMMENTED ON TWO DETAILED POINTS (DATE OF FIRST PAYMENTS · WHERE THEY THINK 1 JANUARY 1997 BETTER THAN 30 JUNE AND EXCHANGE RATE WHERE THEY DO NOT THINK THE 1991 AVERAGE IS ''NEUTRAL'').
10. THE COMMITTEE SEEMED SPLIT ON WHETHER THEY SHOULD LET US DRAW THEM DOWN THIS PATH. CARTLAND INITIALLY SAID THAT THEY WOULD COMMENT ONLY ON THE GENERAL POINTS COMMON TO ANY SCHEME BUT THAT THEY WOULD FIRST NEED AT LEAST A WEEK TO STUDY THEM: PERHAPS THEY SHOULD COMMENT IN WRITING? WE SAID THAT WE DID NOT WANT TO RUSH MATTERS BUT WE WANTED TO MAKE AS MUCH AND AS RAPID PROGRESS AS WE SENSIBLY COULD. TO INCREASE THE PRESSURE ON THE COMMITTEE WE ANNOUNCED THAT WE WOULD STAY ON FOR AN EXTRA DAY OR TWO IN CASE THEY DECIDED THAT THEY COULD MAKE SOME COMMENTS ON THESE POINTS OR, AS WE HOPED, ON THE MORE SUBSTANTIVE DETAILS TOO.
11. HOWEVER ON 11 MAY THE TEAM RETURNED TO SAY THAT THEY WOULD PREFER TO COMMENT IN WRITING, AND WOULD DO SO WITHIN THE NEXT 10 DAYS. EVEN SO THEIR VIEWS WOULD BE AD REFERENDUM TO THEIR MEMBERS. THEY PUT THEIR TRUST IN HMG NOT TO TAKE UNILATERAL DECISIONS: THEY HOPED FOR FURTHER CONSULTATIONS OF A MORE OPEN AND INFORMAL KIND. THEY ADDED A PLEA FOR HMG TO HELP RESETTLE DEPARTING HMOCS IN OTHER JOBS, INCLUDING IN THE UK PUBLIC SERVICE, AS ENVISAGED IN THE WHITE PAPERS. THEY ARGUED THAT THE MAIN PROBLEM WAS HOW TO KEEP ENOUGH HMOCS OFFICERS IN HONG KONG UNTIL 1997, NOT THEREAFTER: CREATIVE THINKING WAS NEEDED ABOUT USE OF CONTRACT TERMS TO SUPPLEMENT AN HMOCS GENERAL COMPENSATION SCHEME.
DISCUSSION WITH GOVERNOR
12. WE CALLED ON THE GOVERNOR ON 10 MAY. HE CONFIRMED THAT HIS VIEWS ON THE HMOCS CLAIM FOR A RIGHT OF EARLY RETIREMENT ARE UNCHANGED. WE OFFERED TO CLEAR WITH PS/GH LANGUAGE SETTING OUT THE GOVERNOR'S VIEWS FOR OUR EVENTUAL SUBMISSION TO MINISTERS: THE GOVERNOR AGREED THAT WE SHOULD DO THIS.
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