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FROM: C Hum
DATE: 21 October 1992
M. Hyam
Keep
CONFIDENTIAL
HKA 233/1
Thank you.
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HMOCS ARRANGEMENTS
Sir J Coles
Mr Ricketts, HKD
22Y
DAVID GILLM 1955
October
1. The PUS minuted on the Governor s letter of (attached):
"The last manuscript sentence is a bit ominous. Do you know what it means?"
I have delayed replying while we have tried to clarify the position with the Treasury (see below).
1
2.
Briefly matters stand as follows. Arrangements for members of HMOCS were discussed between the Secretary of State, the Chief Secretary and Mr Patten in the early summer, shortly
Matters before he left to take up his position in Hong Kong. ended inconclusively, with the Chief Secretary resisting our proposals. It was agreed that FCO and Treasury officials would put together a paper setting out costed options, as a basis for
Work on further discussion between Ministers in the autumn. this paper is now well advanced. For some time we were delayed because the Hong Kong Government had not supplied information for incorporation in the paper. That has now been received, and it is Treasury officials who are dragging their feet. are pressing the Treasury to agree to a meeting at working level before the end of the week, with the aim of finalising the paper.
I am in touch with the Treasury Under-Secretary concerned to this end.
3.
We
Our strategy is to ensure that a further Ministerial discussion takes place before the Governor returns to London in mid-November. The financial climate could scarcely be less propitious, and if we are to get anywhere at all we will need to use Mr Patten's return to bring matters to a head and to mobilise the Prime Minister. We have been careful to make plain in all the Ministerial correspondence with the Treasury that these arrangements would require extra provision, on the ODA vote, from 1997.
4. The Governor's letter to the Secretary of State was no doubt designed to bring pressure to bear on Ministers, in particular in the Treasury. (I have passed a copy of the letter to my Treasury opposite number.) I suspect that Mr Patten's reference to "an issue of honour" is deliberately
CONFIDENTIAL
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