TNAG-2693-FCO40-3896-Meetings-and-calls-on-Alastair-Goodlad--Minister-of-State-fo-1993 — Page 19

|HAA

fa HKA 30111

CODE 18-77

Reference.

Mr Morris

ROUND UP FOR MR GOODLAD

1.

:

HKA 30111

Z AUG 1993

You may wish to include the following points in the round up for Mr Goodlad:

HMOCS

In the light of the decision taken during the Governor's visit that it would be best to avoid bringing this issue to a head until the autumn, no further discussions have taken place with Treasury officials. We will re-submit in September.

Localisation

HKG announced on 30 July that overseas agreement (contract) civil servants who are Hong Kong permanent residents will be allowed to transfer to local terms of service. Reactions have been as bad as possible in terms of the breadth of criticism received from the press, political parties and local civil service groups at what is seen as a sudden change in policy. HKG had given the NCNA an informal briefing on the change in policy two days earlier, but the Chinese side reacted strongly to media reports that they had been consulted by HKG in advance of the announcement.

While the Chinese have fallen short of calling the HKG's move a "petty trick", they have been at pains to point out that the new policy contravenes the JD and BL insofar as there is no Sino-British consensus on the definition of a "Hong Kong Permanent Resident" and that unless the proper channels of consultation, through the JLG, are used, it is difficult to say what will happen to those officers who do transfer to local terms. HKG have been responding to criticism by saying that the changes are short-term, transitional measures; that the numbers transferring to local terms are likely to be very small; that they remain fully committed to the localisation policy and that the Chinese will be consulted on longer term

measures.

Governor's travel

The Governor will be on holiday until 30 August.

вокий

Bridget Paris

Hong Kong Department

WH303

2702652

10 August 1993

1

24