TNAG-2686-FCO40-3888-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 183

Jee felio (111)

HKA, 233./4

DESK XX

27 APR 1993

livary secretary

The

mimitor agrees

FIDENTIAL

TOY

REGISTRY Action TaxFROM:

6.5. Davey 23/4

DATE:

CC:

бильи 28

22 APR 1993

23

J C Morris

Hong Kong Department

22 April 1993

PS/Baroness Chalker PS/PUS

Sir J Coles

Mr Muir

Mr Kirby, ODA

Miss Brooks,

Legal Advisers

Mr Fifoot,

Legal Consultant

Mr Fish,

RMD

Съвил гута

127

Mr Ham

PS/Mr Goodlad

14 mimiter

Ahazit

Private Secretary

ODA

Cenient with

Lettr.

PS

나

Pu 2314

HONG KONG: HER MAJESTY'S OVERSEAS CIVIL SERVICE (HMOCS): LETTER FROM CHIEF SECRETARY

Problem

A 1. How to respond to the Chief Secretary's letter of 20

April?

00

B

Recommendation

2.

I recommend that the Secretary of State reply on the lines of the attached draft.

Background

3. The Secretary of State wrote to the Chief Secretary on29 March setting out our best case in support of the FCO-proposed package. The Chief Secretary's reply suggests an early meeting "to discuss how to take the issue forward". Treasury officials have given no hint that they are prepared to move towards us, and I believe there is little prospect that a further meeting with the Chief Secretary now would produce a compromise that would meet the Governor's needs. In any case the Prime Minister has now asked the Cabinet Secretary to recommend a solution, so the matter is overtaken.

have

4. The Treasury have been passed a copy of the Governor's letter to the Prime Minister of 20 April, but they not seen Roderic Lyne's letter of 16 April, recording the Prime Minister's decision to refer the matter to Cabinet Office. The question of how to break the news to them is a little sensitive. I see advantage in an early reply to Mr Portillo's letter so as to put our spin on the news, and to side-step any

sub.hmocs20.MORRIS

JEB

CONFIDENTIAL