TNAG-2429-FCO40-3531-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 19

SECRET

FM HONG KONG

TO IMMEDIATE FCO

TELNO 2812

OF 02113OZ DECEMBER 92

SECRET

HKA 233/1

TOP COPY Q DIST ?

638

127206 MDHIAN 0512

PERSONAL FOR RICKETTS, HKD.

635

FROM GOVERNOR.

YOUR TELNO 1664 HMOCS: LINE TO TAKE WITH HMOCS ASSOCIATION.

1. I AM GRATEFUL FOR YOUR AGREEMENT TO THE REASONABLY EXPLICIT MESSAGE IN PARAGRAPH ONE OF TUR. WE HAVE PASSED THIS ON TO CARTLAND, AND HOPE THAT IT WILL TAKE SOME HEAT OUT OF THE SITUATION AND ENSURE THE RE-ELECTION OF THE MODERATE COMMITTEE. WE ARE FAXING A COPY OF OUR LETTER TO WHITNEY, HKD.

2. I AM DISAPPOINTED THAT TREASURY IS STILL MAKING HEAVY WEATHER OF THE COMPENSATION SCHEME, PARTICULARLY GIVEN OUR ACCEPTANCE OF THE NEED TO ALLOW FOR A RIGHT TO RETIREMENT. WE BELIEVE THAT A REVISED COMPENSATION SCHEME ON TRADITIONAL LINES, COUPLED WITH THE RETIREMENT PROVISIONS, IS FULLY JUSTIFIED IN TERMS OF PAST PRACTICE AND PRECEDENT. IT MEETS HMG'S MORAL COMMITMENT TO HMOCS OFFICERS WHILE HELPING TO ENSURE THE RETENTION OF HMOCS OFFICERS IN HONG KONG UP TO 1997.

3. A STERLING SAFEGUARD AT A RATE OF 22:1 IS TOTALLY UNACCEPTABLE. THERE IS NO HISTORICAL BASIS FOR MAKING A COMPARISON WITH UK PAY LEVELS, AND TO INTRODUCE THIS NOW FOR HONG KONG ALONE WOULD BE QUITE WRONG. WHILE I AM KEEN TO SEE A FURTHER ROUND OF CONSULTATIONS START AS SOON AS POSSIBLE, THIS WILL HAVE TO BE ON THE BASIS OF REASONABLE AND DEFENSIBLE PROPOSALS. IN OUR CONSIDERED VIEW, THE HMOCS ASSOCIATION WOULD NOT ACCEPT A RATE BELOW 16:1. THEY WILL ARGUE HARD FOR THEIR PROPOSED RATE OF 13.76:1, BUT WE THINK THAT THEY WILL EVENTUALLY ACCEPT 16:1 IF THE REST OF THE PACKAGE IS ACCEPTABLE.

4.

YOU ARE AWARE OF THE IMPORTANCE THAT I ATTACH TO RESOLVING THIS ISSUE AS SOON AS POSSIBLE. THAT SHOULD BE FEASIBLE FOLLOWING THE DISCUSSION AT OPD (K) ON 18 NOVEMBER. I HOPE THAT IT WILL BE POSSIBLE TO OBTAIN A SATISFACTORY ANSWER TO THE SECRETARY OF STATE'S MINUTE OF 18 NOVEMBER SOON. IF NOT I MAY HAVE TO BRING THE MATTER AGAIN TO THE PERSONAL ATTENTION OF THE PRIME MINISTER.

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