TNAG-2687-FCO40-3889-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 42

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Hong Kong: HMOCS

The Secretary of State and Mr Goodlad had a word about HMOCS ahead of Mr Goodlad's visit to Hong Kong. The Secretary of State said that, despite his efforts, the Prime Minister was disinclined to impose a solution on the Chief Secretary: without the Prime Minister's intervention, the Secretary of State was not confident that he could persuade Mr Portillo to accept even to split the difference between the FCO and Treasury proposals. Both the Governor and the Chief Secretary had now dug themselves in, and it was not clear how to unblock the issue. Mr Goodlad agreed that he would talk the issue through once more with the Governor during his visit. The Secretary of State added that it would be helpful if the Governor could look once again at the possibility of the Hong Kong Government contributing something towards a settlement: this might just help to shift the Treasury.

25 May 1993

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(J S Smith)

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CONFIDENTIAL AND PERSONAL