TNAG-2429-FCO40-3531-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 116

let

cst.ps/let/1pw3.7

CONFIDENTIAL'

their career and personal prospects.

He concluded that a quick settlement would help morale in the HKG and reduce the likely public fuss.

8. The Chief Secretary said it would not, in his view, be possible to sort out detailed packages before Mr Patten left for Hong Kong. In any case, the objections which the HMOCS had raised to the proposals that had already been put to them should not be taken at face value. If the private sector were prepared to play a partial role in capitalising future pension obligations, that option should be examined carefully.

9. The Foreign Secretary concluded that he was happy for officials to undertake urgent work on options for possible packages of help

help with HMOCS pension arrangements. They should look at sterling guarantees including possible private sector capitalisation, the compensation/incentive scheme, SPOS and early retirement arrangements. They should then set out a range of costed options for further consideration. The Chief Secretary said he thought this work could be completed through the Summer so Foreign Secretary and he could look at the matter again later in the year. In the meantime it was essential not to commit the Government publicly to announcing a package on any precise timescale. The Foreign Secretary agreed. On arrival in Hong Kong Mr Patten should say that he had discussed HMOCS pensions with Ministers before leaving London, that he and they were fully seized of the issues, and that he expected to be able to discuss the matter with HMOCS within reasonable time.

that

Yours,

Peter

PETER WANLESS Private Secretary