FROM:

M V Stone

0661 WWW OF

(26)

DATE:

Hong Kong Department

30 March 1990 HKB €31/4

RECEIVED IN BOUSTRY

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- 9 APR 1990

CC:

Mr Mclaren

ESK C

PV

W

Mr Paul PS/Mr Maude

Maudy wi

HONG KONG: OVERSEAS SERVICE PENSIONERS

Mr Fish ODA

ASSOCIATION

A

1. The Overseas Service Pensioners' Association (OSPA) has written

to Mr Maude about whether a General Compensation Scheme will be

introduced and about reduced promotion prospects for expatriates in

view of the Basic Law requirements and localisation.

They have

referred to a letter Mr Maude sent to Mathew Taylor MP on 21 August

1989.

2.

I attach a draft reply which has been cleared with Hong Kong,

the ODA and Legal Advisers.

3. The main issue in the letter is the question of whether a

classic General Compensation Scheme, allowing for early retirement

in 1997 of members of Her Majesty's Overseas Civil Service (HMOCS),

if they wish to.

4. Our aim in Hong Kong has been to encourage HMOCS members to

remain in the Civil Service after 1997. To do this, we have

concluded that we should not offer early retirement as an option.

Instead, we would give some limited compensation in 1997; and

further annual payments for up to nine years thereafter

those who remain on.

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for

5. Precedence is on the side of the OSPA: in previous cases where

colonies have moved to independence, HMOCS members have been offered

ROYAPW

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