TNAG-2689-FCO40-3891-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 61

CONFIDENTIAL

SECRETARY OF STATE'S DISCUSSION WITH THE GOVERNOR ON HMOCS

Points to Make

Share your wish to get this problem sorted out once and for

all.

- To prepare the way, I discussed HMOCS with the Chief Secretary earlier this week and have had a word with the Prime Minister.

Believe the Chief Secretary is prepared to split the

difference on the Compensation Scheme. But he will not accept HK$16: £1 for the pension safeguard, nor ODA'S proposed amendment to the SPOS Regulations.

So we must either offer to compromise further with the Chief Secretary or seek a decision from OPD (K) on 10 November.

-

My officials advise that the best we are likely to achieve through further discussions with the Treasury is a split on the safeguard rate at around HK$20/22: 1, but no SPOS amendment.

Difficulties we face on public expenditure mean that it will not be an easy wicket in OPD (K). Would need to consider whether we should go all out for a good SPOS amendment, even if this means giving some ground on pension safeguards.

- To get this item discussed at OPD (K) I will need to assure the Prime Minister that you will not oppose publicly the Committee's decision.

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CONFIDENTIAL