TNAG-2426-FCO40-3528-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 17

CONFIDENTIAL

HONG KONG: HMOCS: OPTIONS

1. A meeting was held at the FCO on 23 July to discuss the drafting of the paper requested by Ministers setting out options for arrangements to be put in place for HMOCS officers in Hong Kong in connection with the change of sovereignty in

Mr Woodfield and Mr Rayson (HMT), Mr Fish (ODA), Mr Ballantyne (GAD) and Mr Cox and Mr Stone (HKD, FCO) attended.

1997.

General Points

2.

Mr Woodfield agreed that we should work on the basis of

the Hong Kong Department draft of 17 July (enclosed with Mr

Cox's letter to him of that date). Mr Cox said that the FCO preference would be to narrow down the options, so as to give Ministers a more digestible paper. Mr Woodfield and Mr Rayson said that Mr Portillo would wish to see a broad range of options. In terms of general presentation, they suggested

that:

(a)

the nature of each option should be clearly set out;

(b) the options should run from the cheapest to the most expensive;

(c) the total potential costs should be shown, rather than just illustrations for two years: this might best be done in graph form (ACTION: GAD/ODA to liaise);

(d) some effort should be made to show how any scheme for early retirement for HMOCS officers in 1997 might affect the contingent liability for sterling safeguards, eg by

showing the impact if all HMOCS officers retired in

1997. Mr Stone pointed out the risks of asking Hong Kong to calculate this option. (ACTION: GAD/ODA to liaise);

fin.opt.ADM

SLM

CONFIDENTIAL

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