SECRET
FM FCO
TO DESKBY 060030Z HONG KONG
TELNO 421
OF 05180OZ MARCH 92
SECRET
144071
MDHOAN 0898
7613
по боже
бра
Annex to file JAM 6/3
blum
STRICTLY PERSONAL FOR PS/LORD CAITHNESS AND RICKETTS (HKD) (VISITING) FROM COX, HKD
70
M Burns J
71
OUR TELNO 403 AND YOUR TELNO 682: HMOCS
1.
WE ARE PLEASED THAT LORD CAITHNESS'S MEETING WITH MEMBERS OF THE HMOCS ASSOCIATION APPEARS TO HAVE GONE WELL AND THAT HE WAS NOT PUT UNDER PRESSURE TO SAY ANYTHING NEW. WE SHALL BE TELEGRAPHING POSTS SEPARATELY TO DISCUSS HOW BEST TO TAKE THIS ISSUE UP WITH THE CHINESE.
2.
WE WONDER, HOWEVER, WHETHER THERE WOULD NOT BE MERIT IN THE MINISTER SETTING DOWN THE LATEST POSITION IN WRITING, EITHER TO THE HONG KONG GOVERNMENT OR TO A RESPONSIBLE MEMBER OF THE ASSOCIATION, BEFORE HE LEAVES HONG KONG. NOW THAT THE TREASURY HAVE AGREED THAT WE MAY TAKE FORWARD THE QUESTION OF COMPENSATION AS WE PROPOSED, WE SEE ADVANTAGE IN NAILING THIS DOWN: WE WOULD NOT WISH TO BE LEFT IN THE POSITION THAT FURTHER (PERHAPS ACRIMONIOUS) NEGOTIATION WITH THE TREASURY MIGHT LEAD THEM TO WITHDRAW EVEN THEIR CURRENT OFFER ON COMPENSATION. GIVEN PAST TREASURY MANOEUVRES, WE CANNOT SAFELY EXCLUDE THAT POSSIBILITY. E.G. AFTER THE ELECTION THEY HAVE ALREADY
FOCUSED ON THE HIGH FISCAL
RESERVES FIGURES IN YESTERDAY'S BUDGET SPEECH AS AN ADDITIONAL ARGUMENT AGAINST HMG FUNDING STERLING SAFEGUARDS.
3. SUBJECT TO YOUR VIEWS AND THOSE OF THE GOVERNOR, WE THEREFORE WONDER WHETHER LORD CAITHNESS MIGHT BE PREPARED TO WRITE IN CONFIDENCE TO THE CHIEF SECRETARY (PERHAPS IN HIS CAPACITY AS THE MOST SENIOR HMOCS MEMBER IN HONG KONG), OR TO THE ACTING CHAIRMAN OF THE ASSOCIATION, MR MILLER. THE LETTER COULD BE SHORT: ON THE LINES OF THE LAST THREE SENTENCES OF PARAGRAPH 4 OF THE DRAFT STATEMENT. IT COULD ALSO EXPLAIN THAT WE NEEDED A LITTLE TIME TO INFORM THE CHINESE OF WHAT WAS HAPPENING, AND THAT IT WOULD THEREFORE BE DAMAGING TO THE INTERESTS OF ALL CONCERNED IF THE LETTER WERE TO BECOME PUBLIC KNOWLEDGE BEFORE THIS HAD BEEN DONE. THE LETTER SHOULD BE
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