SECTION IV: PUBLIC SERVICE

CONFIDENTIAL

POSSIBLE DEFAULT BY SAR GOVERNMENT IN PAYMENT OF PENSIONS,

GRATUITIES ETC?

52. No reason to suppose that SAR Government will default. Agreement provides that the SAR Government will pay all pensions,

gratuities and other benefits due to public servants, including to

those who have retired before 1 July 1997.

[IF PRESSED]

It would be right for the Government of the day to decide what

action it would be right to take in any given sset of circumstances.

HMG'S RESPONSIBILITIES FOR PENSIONS?

53.

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

ELIGIBILITY OF EXPATRIATE CIVIL SERVANTS FOR EMPLOYMENT?

54. Agreement makes clear that SAR may employ British and other foreign nationals in public service including the police department at all except very highest levels. British and other foreign nationals may also serve as advisers to government departments and

in professional and technical posts.

OPTION OF EARLY RETIREMENT WITH PENSION FOR CIVIL SERVANTS NOT

WISHING TO STAY ON IN EMPLOYMENT AFTER 1997?

55.

Agreement ensures continuity of employment for members of public sevice and safeguards their terms and conditions of service. Assessment Office report shows that these provisions are generally acceptable to those in the public service.

are

[IF PRESSED] Existing pensions ordinance provides for early retirement in certain circumstances and these arrangements reviewed from time to time by Hong Kong Government.

CONFIDENTIAL

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