TNAG-2687-FCO40-3889-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 25

SECRET

FM FCO

TO IMMEDIATE HONG KONG

TELNO 503

OF 241708Z MAY 93

SECRET

HKA 253/1

INFO PRIORITY PEKING, UKREP JLG HONG KONG

166

102161

MDHOAN 3267

PERSONAL FOR PS/GH FROM MORRIS, HKD

fiai;

121

YOUR TELNO 666: HMOCS ARRANGEMENTS: HK HMOCS ASSOCIATION

1 We have delayed replying to TUR as we had hoped that the instruction from the Prime Minister to the Cabinet Office to recommend a solution would take matters forward. As you know, the Cabinet Office exercise has not helped to unblock the impasse.

2.

While we sympathise with Mr Cartland's position and are keen to see the HMOCS Association continue with their moderate approach, there is little more that we can say to them at this stage. We cannot tell them that we have been unable to reach agreement with the Treasury on a revised package and that they will simply have to wait for a political decision to be taken.

3. It is likely that Mr Goodlad will be seeing the Association during his forthcoming visit to Hong Kong. We think the line he should take is to point out the progress that has been made over the last six months (agreement in principal to a revised compensation scheme and sterling pension safeguard, and your decision to permit early retirement on pension); and to give the Committee a broad hint that a final decision is being held up because of the need for all public expenditure proposals to be fully and properly scrutinized. This should at least indicate to the Committee that the problem lies with the cost of the proposals, and that it is not a case of our dragging our heels.

Bearing in mind the limitations on what we can tell the Committee, we should be grateful for your view on whether the Line in para 3 would be of any assistance to Mr Cartland.

HURD