TNAG-2689-FCO40-3891-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 8

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FM HONG KONG

TO IMMEDIATE FCO

TELNO 1763

OF 191014Z NOVEMBER 93

2 NOV 1993

C

dur Whiring

AND TO IMMEDIATE PEKING, UKREP JLG HONG KONG

Personal for Morris, HKD from Governor

Your Telno 975 and Peking Telno 1496: HMOCS : Briefing the Chinese

SUMMARY

1. We have discussed with UKREP JLG and have prepared the draft Speaking Note in MIFT. We believe that keeping it short and routine will maximise the chance of success and avoid the subject assuming greater importance.

DETAIL

2. The Speaking Note

summarises what HMG proposes to do stressing the standard worldwide obligation to HMOCS and emphasising that the package will be funded entirely by HMG.

3.

In mentioning Sterling pension safeguards and SPOS we have sought to present. these provisions in a UK domestic context so as to avoid any accusations about a lack of faith in the future strength of the Hong Kong Dollar or to cast doubts about the SARG's ability or commitment to pay pensions as set out in the Joint Declaration and Basic Law. For this reason we would prefer not to mention the exchange rate used for the Sterling pension safeguard.

4. We agree with Peking that the SPOS arrangements are entirely a domestic UK matter. However they will figure in consultations with the HMOCS Association and news may therefore leak out to the media. In this context and because SPOS could be seen to reinforce the domestic UK nature of the Sterling pension safeguard and the British UK nature of HMOCS we believe it would be worth mentioning it to the Chinese.

5.

We do not intend to mention specifically general right to retirement and we believe that we could rebut any argument about

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