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Recommendation

3. I recommend that the Secretary of State should agree to the changes proposed by the Hong Kong Government, and agreed by

EXCO, in Civil Service localisation policy, and that HM

Ambassador at Peking should be instructed to inform the Chinese

Government about them.

Background

4.

to

The normal retirement age for administrative officers in Hong Kong is 55. At present, they are normally given, subject

their being efficient and required, extensions on contract

up to the age of 60. Hong Kong propose that in future, Overseas administrative officers should be given only a 2 year

extension to the age of 57. Their pension will be suspended

during the extension but they will receive gratuity at the end of the contract period. After the 2 year extension they

will generally be required to leave the service, whereas local

officers may be given further contracts up to the age of 60,

again on gratuitable terms but with pension suspended. The

Hong Kong Government are satisfied that, under this policy,

they should be able to move gradually from the present

situation in which the majority of secretaries in charge of

in which the majority

The

departments are Overseas officers to on e

would be local officers, by the early to mid 1990s.

arrangements would not have any sudden impact, and Hong Kong

are confident that there is an adequate pool of able and

experienced local officers to meet this situation.

5. We have been in touch with the Governor, and with HM

Ambassador at Peking, about this, and have agreed the text of a

speaking note which would be used by the Embassy in telling the

Chinese Foreign Ministry about this forthcoming change. The

speaking note makes it clear that this is a modest

administrative measure aimed at progressively increasing the number of local officers in very senior posts, to enable us to

comply with Section IV of

of Annex I of the Joint Declaration

without administrative disruption.

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