TNAG-2689-FCO40-3891-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 188

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L¿ AUG 1993

Hong Kong: Arrangements for Members of Her Majesty's

Overseas Civil Service (HMOCS)

The Secretary of State and the Governor of Hong Kong discussed tactics on HMOCS this morning. The Secretary of State read out the analysis in your minute of 26 July with which he agreed. He thought it would be difficult to bring the issue to a head before the summer break and even then, that would require further concessions to the Treasury position.

The In

The Governor said this would be extremely difficult. SPOS mechanism was important and needed to be topped up. his judgement, if there were a cap on the compensation scheme and a sterling pension safeguard set at less than HK$16:£1 then that would lead to an explosion among the people concerned in Hong Kong. In the light of the Secretary of State's advice, the Governor agreed that it would be best to avoid bringing the issue to a head in the next week and to return to it in the autumn.

I am sure you will remain in close touch with the Governor and his staff on this issue. Please submit again when you think the time is propitious to raise the subject at ministerial level with the Treasury.

Jom Samen

(R J Sawers)

29 July 1993

Cc: Mr Hum

PS/Mr Goodlad

PS/Baroness Chalker

PS/PUS

Sir J Coles

Mr Muir

Mr Kirby, ODA

Miss Brooks, Legal Advisers

Mr Fish, ODA

RMD

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