BOWABJ

Mr Pusinelli

Chairman

Overseas Service Pensioners' Association 63 Church Road

Essex

BN3 2BD

to them

Thank you for your letter of 26 January about whether or not there will be compensation scheme which will enable officers to retire prematurely with compensation in 1997.

I think it is worthwhile setting out again one of the fundamental factors relevant to this subject. This is the clear statement made in the Sino British Joint Declaration on the question of Hong Kong (Section IV) which states: "After the establishment of the Hong Kong Special Administrative Region, public servants previously serving in Hong Kong in all government Departments, including the Police Department, and members of the judiciary may all remain in employment and continue their service with pay, allowances, benefits and conditions of service no less favourable than before. The HKSARG shall pay to such persons who retire or complete their contracts, as well as to those who have retired before 1 July 1997, or to their dependants, all pensions, gratuities, allowances and benefits due to them on terms no less favourable than before, and irrespective of their nationality or place of residence."

There

The situation is therefore not identical with other territories which have moved towards independence. is a firm assurance that expatriate officers may continue in employment: only a limited number/will not be available, and a limited compensation scheme has been set up by the Hong Kong Government to compensate those few officers whose careers may be affected. Promotion will continue to be on merit: if expatriate officers cannot be promoted because of localisation or requirements of the Basic Law, they will be eligible to receive compensation.

As set out in my letter of 21 August 1989, our efforts must be devoted to encouraging pensionable expatriate officers to stay on after the transfer of sovereignty, in

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