TNAG-2689-FCO40-3891-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 87

CONFIDENTIAL

3.

The gap is still too wide to hope to settle at this

bilateral. Treasury officials think Mr Portillo is most

unlikely to have any new concessions to offer. In that case, taking account of the progress made at official level over the

summer, our objectives for this meeting are to:

- confirm agreement in principle on the proposed Compensation

Scheme.

C

-

establish that further FCO/Treasury discussions will not lead to an agreement on the other aspects of the package and that a political decision is therefore required from OPD (K).

4. I understand that Treasury officials are including in the

Chief Secretary's brief a copy of the Cabinet Office paper on

HMOCS. I attach a copy of this paper in case the Chief Secretary refers to it.

The

J C Morris

arrange.ADM.JRB

CONFIDENTIAL