ܢܚܕ ܵ ܼ
43
SECRET
BUDHIA
064445 MDHIAN 1265
SECRET
FM HONG KONG
TO IMMEDIATE FCO
TELNO 774
OF 17103OZ MAY 93
INFO PRIORITY PEKING, UKREP JLG HONG KONG
PERSONAL FROM GOVERNOR TO HUM, AUSS AND RICKETTS, HKD.
سم
YOUR TELNO 456HMOCS.
1.
THANK YOU FOR SIGHT OF THE DRAFT CABINET OFFICE PAPER AND FOR FLAGGING UP SUGGESTIONS ON A POSSIBLE NEGOTIATING BRIEF FOR THE SECRETARY OF STATE.
2. I HAVE TO SAY THAT I AM NOT HAPPY THAT EITHER THE CABINET OFFICE PAPER OR THE COVERING LETTER SETS OUT THE FACTS AND THE POINTS ON WHICH DECISIONS ARE REQUIRED IN A SUFFICIENTLY BALANCED WAY. THE PAPER IS CAST IN THE LIGHT OF SEEKING A COMPROMISE BETWEEN THE TREASURY AND THE FCO PROPOSALS RATHER THAN SEEING THE FCO PROPOSAL AS A REASONABLE COMPROMISE BETWEEN THE TREASURY POSITION AND THE DEMANDS OF THE HMOCS ASSOCIATION. IF A COMPROMISE BETWEEN THE TREASURY AND FCO POSITIONS HAD BEEN DESIRABLE OR ACCEPTABLE, IT WOULD NOT HAVE BEEN NECESSARY TO PUT THIS SUBJECT TO THE PRIME MINISTER FOR DECISION.
3=
THE CENTRAL ISSUE, AS I SEE IT, IS ONE OF PRINCIPLE AND THAT IS, WHETHER IN THE CASE OF HONG KONG, AND HONG KONG ALONE, HMG SHOULD DEPART FROM THE ESTABLISHED HMOCS COMPENSATION AND STERLING PENSION SAFEGUARD ARRANGEMENTS INTRODUCED FOR EVERY OTHER HMOCS TERRITORY. IN PARTICULAR IT IS WHETHER HMG SHOULD SEEK TO INTRODUCE A NEW PRINCIPLE OF UK COMPARABILITY AND THEREBY REDUCE THE TERMS OF THE COMPENSATION AND STERLING SAFEGUARD PACKAGE FOR HONG KONG HMOCS OFFICERS. THIS ALSO NEEDS TO BE VIEWED IN THE CONTEXT OF HONG KONG HMOCS OFFICERS HAVING A LEGITIMATE EXPECTATION OF THE SAME GENERAL ARRANGEMENTS AS THOSE INTRODUCED FOR THEIR HMOCS COLLEAGUES ELSEWHERE.
I BELIEVE THAT THE PAPER ITSELF SHOULD START WITH AN EXPLANATION OF THE AMOUNTS INVOLVED IF THE STANDARD HMOCS PRACTICE WAS APPLIED TO HONG KONG. THIS WOULD MEAN A TRADITIONAL COMPENSATION SCHEME USING FULL FACTORS WITH A CAP AT ABOUT POUNDS 200,000 AT 1992 PRICES AND A STERLING PENSION SAFEGUARD RATE SET
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