(K) HMOCS

CONFIDENTIAL

raises

29. The draft agreement provides satisfactorily for continuity of

service by serving officers in the public service in Hong Kong on

terms and conditions, including pay and pensions, no less favourable

than before 1 July 1997. These provisions apply to members of Her

Majesty's Overseas Civil Service (HMOCS) serving in Hong Kong as

well as to other civil servants. The resumption of sovereignty over

Hong Kong by the People's Republic of China misses similar issues in

respect of HMOCS as independence has in other dependent territories.

It is not possible, however, to define now, twelve and a half years in advance of constitutional change, all the arrangements which will

apply to members of HMOCS serving in Hong Kong and to the payment of

their pensions by the Hong Kong SAR Government after 1 July 1997. I

can assure you however that HMG have very much in mind the concerns

of HMOCS officers.

CONFIDENTIAL

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