TNAG-2685-FCO40-3886-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 45

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expressing concern that a solution had not yet been found on

arrangements for Hong Kong HMOCS officers. He emphasised that, in his view, the Secretary of State's proposal (a sterling

pension safeguard set at HK$16: £1, and a traditional

compensation scheme) represented the absolute minimum which we

could honourably impose on the HMOCS officers. He asked that a

political decision be taken. In response, the Chief Secretary wrote to the Secretary of State on 3 February, with a copy to the Prime Minister, setting out the Treasury case.

The gap remains very wide: the Treasury have not been prepared to move towards us at all from the position they took in discussion with the Secretary of State in the autumn. Mr Portillo does

however acknowledge that a political decision was required.

4. Mr Portillo has set out his case in highly political terms

for the benefit of the Prime Minister. We need to do the same.

The Prime Minister has now had two letters on this issue from

the Governor and has not yet responded. I continue to believe that his intervention will be necessary if we are to bring this

long-running saga to a resolution. The draft does not,

therefore, take up Mr Portillo's offer of a further round of bilateral FCO/Treasury negotiation.

олим

PF Ricketts

I ape.

A good hulk.

Cotten 1/2

hk.ments.ADM

SLM

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