SECRET

Constitutional Change

23. In the event of constitutional changes under which

the Secretary of State is no longer responsible for the

public service of Hong Kong, HMG will no doubt wish the

new constitutional arrangements to include provisions

designed to ensure that payments of Hong Kong pensions will

remain the liability of the Hong Kong Government and will

continue to be paid from Hong Kong funds.

Compensation Scheme

24. At the stage when the Secretary of State relinquishes

his present responsibility for the Hong Kong public service,

it will be necessary to introduce a compensation scheme for

serving members of the Hong Kong public service who are

members of HMOCS. The scheme may also need to cover some

permanent and pensionable officers who are not members.

of HMOCS but who are either expatriates or are local

officers in senior posts whose career prospects have been

adversely affected by constitutional change.

Liability to Pay Compensation etc

25. Payment of compensation and other benefits under the

compensation scheme should, if possible, also become the

liability of the Hong Kong Government, in which event they

too will be payable from Hong Kong Government funds.

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/Pressure

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