TNAG-2685-FCO40-3886-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 156

SECRET

FM FCO

TO IMMEDIATE HONG KONG

TELNO 40

OF 151724Z JANUARY 93

057643

MDHOAN 7366

9

SECRET

HKA 233/1

RECEIVED IN R'

18 JAN 1993

STRY

REGISTRY Action Taliena

DESK OFFICER

DEX

PA

TOP

COPY

рел

PERSONAL FOR GOVERNOR FROM RICKETTS, HKD

HMOCS

IT IS NOW ALMOST A MONTH SINCE YOU WROTE TO THE PRIME

MINISTER. I THOUGHT YOU WOULD WANT TO KNOW WHAT IS GOING ON.

1.

2. NO 10 HAVE GOT FROM US THE SECRETARY OF STATE'S MINUTE TO THE CHIEF SECRETARY OF 18 NOVEMBER. WE UNDERSTAND THEY HAVE BEEN

LEANING ON THE TREASURY TO REPLY. THEY HAVE STILL NOT DONE SO:

ALTHOUGH THEY MAY BE ABOUT TO LAY THEIR EGG NOW. WE THINK THAT TREASURY OFFICIALS HAVE RECOMMENDED THAT THE STERLING SAFEGUARD RATE BE SET NO LOWER THAN HK DOLLAR 26:1 POUND, AND THAT THEY AGREE COMPENSATION SCHEME D IN THE OPTIONS PAPER BUT WITH A CAP

OF 120,000 POUNDS.

3. IF THIS IS THE RESPONSE, IT SHOULD BE CLEAR TO NO10 THAT THE GAP BETWEEN OUR AND THE TREASURY'S POSITION IS SO WIDE THAT IT

WILL NOT BE BRIDGED BY FURTHER DISCUSSION AT OFFICIAL LEVEL AND

THAT A POLITICAL DECISION IS REQUIRED.

HURD

YYYY

ΜΑΙΝ

20

HKD

PS

PS/MR GOODLAD

NNNN

DISTRIBUTION

20

SIR J COLES

MR MUIR

MR HUM

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