TNAG-2669-FCO40-3866-Hong-Kong-Civil-Service-1993 — Page 242

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067735 MDHIAN27

OURSELVES FOR THE RECOIL. WE HAVE HOWEVER DEVISED FURTHER TACTICAL REFINEMENTS DESIGNED TO TRY TO MAKE THE CHANGES LESS UNPALATABLE.

5. WE NOW PROPOSE TO PRESENT OUR DECISION AS A TWO STAGE PROCESS. IN THE FIRST STAGE, OVERSEAS AGREEMENT OFFICERS WHO ARE PERMANENT RESIDENTS WOULD BE ALLOWED TO CONVERT TO LOCAL AGREEMENT TERMS 3 YEARS). SUBJECT TO EXCO (CONTRACTS AR NORMALLY VALID FOR 2 ADVICE, THIS STAGE WOULD BE IMPLEMENTED IMMEDIATELY AFTER WE HAD INFORMED THE CHINESE AND THE STAFF ASSOCIATIONS. THIS WOULD PROBABLY GET US OFF THE HOOK WITH THE AECS, AND WE WOULD NOT HAVE CREATED NEW COMMITMENTS FOR THE SARG. BUT THE CHINESE, INCITED BY THE LOCAL STAFF ASSOCIATIONS, WOULD NO DOUBT STILL CRITICISE US.

6. THE SECOND STAGE, TO WHICH WE WOULD ALSO REFER IN GENERAL TERMS WHEN INFORMING STAFF AND THE CHINESE ABOUT THE FIRST STAGE, WOULD BE CONSIDERATION OF WHETHER THE EX-OVERSEAS OFFICERS WHO HAD TRANSFERRED TO LOCAL AGREEMENT TERMS COULD SUBSEQUENTLY BE ALLOWED TO CONVERT TO PENSIONABLE TERMS (PARA 7 OF OUR TELNO 1138): AND OF WHETHER IN THE LONGER TERM WE SHOULD ABOLISH THE DISTINCTION BETWEEN LOCAL AND OVERSEAS TERMS AND INTRODUCE COMMON TERMS OF APPOINTMENT AND CONDITIONS OF SERVICE. WE ARE IN ANY CASE BEGINNING TO LOOK AT THE LATTER POINT. WE WOULD MAKE CLEAR TO THE CHINESE, AND TO THE STAFF ASSOCIATIONS, THAT WE WOULD CONSULT THEM FULLY BEFORE TAKING DECISIONS ON THE SECOND STAGE.

TIMING

7. I NOW PROPOSE TO GO TO EXCO ON 27 JULY. WE WOULD THEN INFORM THE NCNA ON THE FOLLOWING DAY AND ANNOUNCE OUR NEW APPROACH TO THE STAFF ASSOCIATIONS AND THE LEGCO PUBLIC SERVICE PANEL ON 30 JULY. THE CHINESE MAY COMPLAIN THAT WE ARE TRYING TO PRESENT THEM WITH A FAIT ACCOMPLI. THEY MAY ALSO DEMAND CONSULTATION. THIS DEMAND WOULD HAVE TO BE RESISTED BECAUSE, IF WE WERE TO AGREE, THE AECS WOULD IN THE MEANTIME TAKE US TO COURT, AND PROBABLY WIN.

8. WE WILL KEEP OUR BRIEFING OF THE CHINESE AS LOW KEY AND TECHNICAL AS POSSIBLE. IT WILL BE GIVEN TO NCNA BY CSB OFFICIALS, IN RESPONSE TO NCNA'S EARLIER REQUEST TO CSB FOR AN EXPLANATION OF OUR POLICY IN THIS AREA. WE WILL FAX TO HKD AS SOON AS IT IS READY OUR PROPOSED SPEAKING NOTE, ON WHICH WE WOULD WELCOME ANY COMMENTS.

PATTEN

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