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Policy on payment of pensions

5.

HMG's usual policy when dependency becomes independent is to

try to persuade new Government to take on liability for payment of all pensions and of compensation, where appropriate, for members of Her Majesty's Overseas Civil Service who have served there. Aim would be that arrangements agreed for future of Hong Kong would

allow for Hong Kong Government to continue to bear this liability,

or at least that liability would not fall to HMG.

6. This, however, will have to be considered in light of

circumstances at time. HMG has under the Overseas Pensions Act 1973

assumed responsibility for payment of pensions to overseas officers

of certain former dependencies. Also precedents (eg Aden) for HMG assuming responsibility for payment of ex-gratia Ioan advances to local officers who had served before independence where new

Government reneged on agreement to accept liability for pensions.

Hong Kong Department

September 1983

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