TNAG-2430-FCO40-3532-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 35

CONFIDENTIAL

CONFIDENTIAL

FM FCO

TO DESKBY 11010OZ HONG KONG

TELNO 1716

OF 101719Z DECEMBER 92

HKA 233/

TOP COPY Q DIST ?

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153133

MDHOAN 5635

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PERSONAL FOR WATERS (CSB) FROM WHITNEY, HKD

635

OUR TELNO 1664 LINE TO TAKE WITH HMOCS ASSOCIATION

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THANK YOU FOR FAXING TO US A COPY OF YOUR LETTER OF 8 DECEMBER TO THE CHAIRMAN OF THE HMOCS ASSOCIATION INFORMING HIM OF THE CURRENT POSITION ON HMG'S PACKAGE OF PROPOSALS FOR HMOCS OFFICERS, AND ALSO A COPY OF THE CHAIRMAN'S REPLY. WE ARE CONCERNED THAT THE SECOND PARAGRAPH OF YOUR LETTER GOES BEYOND THE LINE TO TAKE SET OUT IN TUR BY IMPLYING THAT THERE WILL BE A COMPENSATION SCHEME. AS POINTED OUT IN TUR THE TREASURY ARE STILL CONSIDERING OUR PROPOSAL ON COMPENSATION AND ARE NOT PREPARED AT THIS STAGE TO AGREE IN PRINCIPLE TO A REVISED SCHEME.

2. IN HIS REPLY OF 10 DECEMBER, THE CHAIRMAN STATES QUOTE I UNDERSTAND THAT HMG HAS NOW AGREED IN PRINCIPLE THAT THERE WILL BE A STERLING PENSION SAFEGUARD AND A TRADITIONAL COMPENSATION SCHEME, RATHER THAN AN INCENTIVE SCHEME UNQUOTE. AS YOU KNOW, THIS IS (UNFORTUNATELY NOT THE CASE. THE ASSOCIATION ARE NOW OPERATING UNDER A MISAPPREHENSION. WE BELIEVE THAT, DESPITE THE AWKWARDNESS, THIS NEEDS TO BE CORRECTED. PROBABLY THE ONLY WAY TO DO SO WILL BE FOR YOU TO RESPOND MAKING CLEAR THAT THE POSITION IS THAT HMG IS GIVING CONSIDERATION TO A COMPENSATION SCHEME AS PART OF THE OVERALL PACKAGE.

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.HER MAJESTY'S OVERSEAS

.CIVIL SERVICE

HKD

RESTRICTED

DISTRIBUTION

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OVERSEA PENSIONS/ODA//MR FISH

PS

PS/MR GOODLAD

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