CONFIDENTIAL
SECRETARY OF STATE'S MEETING WITH THE CHIEF SECRETARY ON HMOCS
(27 OCTOBER)
Points to Make
General Points
-
We agreed in margins of Cabinet on 1 July that we should both
be flexible in order to reach a solution.
- Should recognise that the Governor is in a difficult position.
He needs the loyalty of HMOCS and cannot be seen to have agreed
to a package which they regard as unfair. We must avoid a rift
between us and the Governor.
Compensation
- ODA's latest figures show my proposed scheme would cost £46 million, whereas your proposal would cost £32 million.
- Our officials are agreed that it should be possible to produce
an acceptable scheme costing £39 million. Suggest we ask
officials to finalise a scheme on this basis.
Sterling Safequard
- I have stressed before the presentational value of a rate of
HK$16: £1, and that even at this rate the chance of any liability
being incurred is remote. The Governor is adamant that the
HMOCS Association will not accept a rate any worse than
HK$16: £1.
- I have looked for flexibility in our position. If you could agree a rate of HK$16: £1, we could accept the mechanism for the safeguard proposed by your officials. This makes it even less likely that any payment would ever be required from HMG.
sos.brief.ADM
SLM
CONFIDENTIAL
No comments yet.
Private notes are available after approval.