M.R.

L.P.

M.R.

A.W.

You may find staff are very unsettled with this

arrangement.

We have quite a large number of long term contract

staff now.

Every person in that situation has to ask himself

when is he going to settle down. In addition if he

has some long term commitments coming up say children's

education or something similar when he knows he

needs to be employed steadily for five years or so, then he may prefer to leave now and go for a job

where he knows he has continuity.

The Joint Declaration refers to arrangements which will come into effect some 13 years from now. Our

Permanent and Pensionable colleagues with their

employment guaranteed to 1997 and beyond can afford

to look to that date. However, Agreement Officers, with the renewal of their employment being decided

every 2 or 3 years, do not have the same perspective.

Although many of them would like to be working for the HK Government up to 1997 and beyond of more

importance and immediate concern is the prospect of a substantial number not having their contracts renewed

due to localisation. Localisation not only results

in reduced numbers of expatriates when it is desired by Government but it will force others to leave

voluntarily, and earlier than expected, because of

/P.7

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