TNAG-2425-FCO40-3527-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 160

cst.ps/dr/9mp16.6

CONFIDENTIAL

CHIEF SECR

SECRETARY

TO

THE

TREASURY

Mrkutelt, the 7 - Where next?

A B

15/Mr Goodlad iS / Barones Chatter Si J Coles Mr Hum

Treasury Chambers, Parliament Street SWIP BAG

071-270 3000

Fax 071-270 5456

HKA 233

402

The Rt Hon Douglas Hurd CBE MP

Foreign Secretary

Foreign & Commonwealth Office

King Charles Street

London

SW1A 2AH

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pa 17 Stove m Mr fox ol

June 1992

fear fonglas

Stake drieted to press orally

( Secreten ol Stake

HONG KONG: ARRANGEMENTS FOR H M OVERSEAS CIVIL SERVICE (HMOCS)

for an laky meeting)

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Norman Lamont has asked me to reply to your minute of 12 June Thank you also for your minute of 1 May. I am sorry that I have not been in a position to reply before now, but these are complex

issues.

2.

I know that you are keen to have an early meeting, your aim being to agree a package of arrangements for HMOCS before Chris Patten arrives in Hong Kong at the beginning of July. share your desire to tackle this issue quickly So that we can bring to an end discussions which have been going on for years. But,

with the best will in the world, I doubt if your timetable is realistic. You appear to have re-thought significant elements of what is envisaged, and there are large gaps in the information and analysis where further work must be done. This need not be a great problem since I am not convinced that the timetable is as urgent as you might

might think. As you mentioned in your earlier minute, the Hong Kong Government (HKG) has now extended the deadline for the HMOCS officers' option between new and old pensions schemes from the end of June to the end of December. these circumstances it seems to me that, while recognising the need for progress, we have some time in which to look properly at your proposals, on the basis of a full and detailed analysis of their financial implications.

3.

In

It might be helpful if I make some initial observations to illustrate the shortfall in information which faces us at the moment. First it is essential that work is done on the financial implications of each element of your suggested package and of how these elements might interact with one another. For example, the possibility of an early retirement scheme needs very careful examination. Although you say this would involve no UK financial

CONFIDENTIAL