HKA 233/1
079 992
SECRET
SECRET
FM FCO
TO IMMEDIATE PEKING
TELNO 455
OF 031637Z JUNE 92
AND TO IMMEDIATE UKREP JLG HONG KONG
INFO IMMEDIATE HONG KONG
PERSONAL FOR AMBASSADOR
UKREP JLG PERSONAL FOR MR GALSWORTHY
HONG KONG PERSONAL FOR GOVERNOR
334
351
TOP COPY
Q DIST?
134.2
(350
359
066554 MDHOAN 5399
ra
YOUR TELNOS 695 AND 726, UKREP JLG TELNOS 227 AND 235 AND HONG KONG TELNO 1439: HONG KONG HMOCS
SUMMARY
347
1. IMPLICATIONS OF POSSIBLE BREACH OF JD 73. A BEST ENDEAVOURS
ASSURANCE AS AN ALTERNATIVE ?
DETAIL
2. WE TAKE IT FROM YOUR TURS THAT YOU SEE A SIGNIFICANT RISK THAT THE CHINESE WOULD REACT VERY NEGATIVELY IF WE APPROACHED THEM IN THE NEXT FEW MONTHS ABOUT THE POSSIBLE INCLUSION IN OUR HMOCS ARRANGEMENTS OF A PRE-1997 EARLY RETIREMENT OPTION ON THE LINES IN HONG KONG TUR. WOULD YOU AGREE THAT THE POTENTIAL CHINESE REACTION TO OUR PROCEEDING WITH SUCH AN OPTION IN THE FACE OF THEIR OPPOSITION, OR WITHOUT ANY PRIOR DISCUSSION WITH THEM, WOULD BE AS SEVERE AS MR GALSWORTHY SUGGESTS IN HIS TELNO 235? WOULD EXPECT OTHER CONSEQUENCES?
3. THE TERMS OF JD 73 ARE CLEAR AND DO NOT RERFER TO 'PREVIOUS' SYSTEMS. IT WOULD BE HARD FOR MINISTERS TO DEFEND PUBLICLY THE POSITION THAT THEY WERE RENEGING ON A WHITE PAPER COMMITMENT, ITSELF ENTIRELY CONSISTENT WITH THE JD, BECAUSE OF A FEAR THAT THE CHINESE WOULD OTHERWISE UNILATERALLY BREACH THIS TREATY OBLIGATION. (THE CHINESE MIGHT SEEM TO HAVE MORE JUSTIFICATION IN REVISITING JD 73 IF WHAT WAS AT ISSUE WAS SOME VERY WIDE-RANGING MOVE, EG A TREBLING OF THE PENSIONS PAYABLE TO ALL PUBLIC SERVANTS, RATHER THAN THE EXTENSION OF AN EXISTING PRACTICE SOMEWHAT, TO AFFECT FEWER THAN ONE PER CENT OF THEM.)
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