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Essentially this is an inducement scheme not a compensation scheme.

4. This is not only far from the traditional compensation scheme but is also very different from what may be read in Colonial 306 and paragraph 17 of Cmnd 1193; and an argument that this is justified "because Hong Kong is different, indeed unique" would seem to be contrary to the position taken by Sir G Howe in the passage quoted above. For all the arguments about difference, eg that the JD (and now the BL) provides, except for certain senior officers, continued employment and that it is impossible to put an actuarial value on the loss of the Secretary of State's protection, the proposals fail to deal with the issues (which are sure to be raised) that continuity of employment means not employment under the Crown but employment under a subordinate government (however different from those of mainland China) of the PRC, and that the consideration that is given to inducement to serve that government is out of all proportion to the consideration given to compensation for loss of career under the Crown.

11 April 1990

Paul Fifoot Legal Advisers

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