TNAG-2428-FCO40-3530-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 74

CODE 18-77

Reference..

586

Mr Ricketts

HMOCS

CONFIDENTIAL

HKA 233/1

Mr. Whithen

423/11

One or two editarial / typographical

Comments. Gould He index shell a He front also include the ballpark coatings.

1. As mentioned this morning, we have agreed the options paper with the Treasury subject to the paper being amended to

include:

568

(i) the 'comparator' option proposed in Woodfield's

letter of 20 October; and

for

ed?

Ex

(ii) advantages and disadvantages of each option as seen

from HMG's perspective.

2.

The Treasury have not given up on the private sector option and have asked for it to be retained in the paper.

They do not favour any HMG guarantee but might consider

subsidising the costs of the scheme, thus sharing with officers the costs involved. They are discussing the

feasibility of the option with the Bank of England; we have suggested a meeting with the two parties as early as possible

this week.

3.

(584)

Attached at A is a revised (and rather unwieldy) options

paper which takes account of the above and other points made

at the meeting. I have sent it to Dave Fish for comments (the questions in manuscript on the draft are points I would like him to clarify) and hope to be able to send it to the Treasury

before lunch tomorrow. It will also need to go to GAD for

them to provide further statistics/graphs.

faxed 3/1

4. A situation which we must avoid is Ministers asking us to

explore further the private sector option. It may well be that the Bank of England conclude that this option is a

min.HMOCS.ADMIN

JEB

CONFIDENTIAL