CONFIDENTIAL

This has

(B) SUPPLEMENTATION FOR HONG KONG EXPATRIATE OFFICERS

11.

Supplementation by HMG for dependent territory staff is at

present provided under the Overseas Service Aid Scheme.

Since

this supplementation has so far been treated as a matter for aid,

Hong Kong, on account of its wealth, has not qualified.

Nevertheless, after completion of the 1971 Salaries Commission two

of its UK members submitted a separate report recommending on

political grounds that the UK should consider offering Hong Kong

payments to cover:

(a) any "topping-up" of salary in the UK of any particular

cadre of overseas officer when required;

and

(b) all overseas education allowances and children's holiday

passages for overseas officers.

The views of the Governor on these recommendations are not yet known, but a good case for supplementation can be based on the continuing

need to strengthen the overseas element in the Hong Kong Service

and to improve its calibre to ensure the good management of the Colony. There are serious political objections in Hong Kong to

the use of Hong Kong funds to pay expatriate officers more than

local officers.

12. During the last few months the opportunity has been taken to have detailed discussions in London with the Governor, Colonial Secretary and senior officers on staffing problems. If the FCO

Л

forward

and mutually is to be in a position to continue to help with planned recruitment advantages and training in the UK periodical discussions on forward planning

must continue.

NOTHING TO BE WRITTEN IN THIS MARGIN

13.

STRENGTH OF THE FUBLIC SERVICES

The size of Hong Kong's Service in round figures is:-

Local officers

80,000

Overseas officers

2,000

82,000

The

The overseas officers include 1,300 on pensionable terms. remaining serving on contract or temporary transfer terms. There is no overseas Service Aid Scheme Agreement with the Hong Kong Government.

CONFIDENTIAL

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