CONFIDENTIAL

J.

17.

PENSIONS OF CIVIL SERVANTS, HMOCS?

HMG'S responsibilities are to see that adequate arrangements are made in agreement for payment of pensions earned in service of

Crown. We have achieved this. Agreement provides that SAR

Government will pay all pensions, gratuities and other benefits due

to public servants and dependants including those who have retired

before 1 July 1997.

[IF PRESSED] No reason to suppose that SAR Government will default.

It would be for the Government of the day to decide what action it

would be right in any given set of circumstances.

K. HMOCS

COMPENSATION ARRANGEMENTS?

18. The draft agreement on the future of Hong Kong provides

satisfactorily for continuity of service by serving officers in the

public service in Hong Kong, on terms and conditions

terms and conditions, including pay and pensions, no less favourable than before 1 July 1997. These preovisions apply to members of Her Majesty's Overseas Civil Service (HMOCS) serving in Hong Kong as well as to other civil servants. Resumption of sovereignty over Hong Kong by the People's Republic of China raises similar issues in respect of HMOCS as independence

has in other dependent territories. Not possible, however, to define now, 12 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 payment of their pensions by the Hong Kong Special Administrative Region Government after 1 July 1997.

Hong Kong Department

4 December 1984

CONFIDENTIAL

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