TNAG-2923-FCO40-4198-Visits-and-proposed-visits-by-Alastair-Goodlad--Minister-of--1993 — Page 52

Background

HMOCS

CONFIDENTIAL

The Minister last saw the HMOCS Association Committee on 31 May

and gave Mr Cartland a letter which set out the progress made on HMOCS (agreement in principle to a sterling pension safeguard

and to a revised compensation scheme, and the Governor's decision that officers will be permitted to retire early with

full pension). In subsequent correspondence to Mr Goodlad, Mr Cartland has said that the Committee do not want an open rift

with HMG on this issue, but that some of the membership is

arguing for a less moderate approach. Mr Cartland (but not others in the Committee) has been briefed in confidence by Mr

Dinham and he is now aware of our difficulties with the

Treasury.

Mr Cartland's letter of 21 September pressed for details on the present position on HMOCS and argued that the current debate in Hong Kong on the change to the localisation policy made it even more important that HMOCS officers should know where they stand in terms of localisation and benefits. In his reply, Mr Goodlad

noted that Ministers now had before them options for a compensation scheme and that the HKG would soon be in a position to inform those HMOCS officers who would be affected by plans to

localise future principal official posts.

In a separate development, the South China Morning Post of

27 September set out in detail our proposals for the

compensation scheme. We do not know the source of the leak, and HKG are neither confirming nor denying the accuracy of the

report.

gdl.oct.ADM

SLM

CONFIDENTIAL