arrangements for members of HMOCS in Hong Kong. If HMG does wish to make such arrangements, it is suggested that the Hong Kong Government should not oppose them. However, the cost of any General Compensation Scheme would have to be borne entirely by HMG. It is therefore also proposed that an approach should be made to the Secretary of State asking him if it is his intention that there should be a scheme for members of HMOCS in Hong Kong and advising him that, if there is, it should be entirely funded by HMG and that it should be announced as soon as possible.
16
Members of HMOCS in Hong Kong would also expect a guaranteed sterling exchange rate for their pensions as has been the arrangement in other British dependent territories in the past. Again, however, if there is to be such an arrangement for Hong Kong it should be entirely the responsibility of the British Government. The Hong Kong Government would not wish to be party to such an arrangement for members of HMOCS without there being similar guarantees for the civil service as a whole. It is also highly unlikely that the Chinese would wish to enter into any agreement providing guaranteed exchange rates for a group of expatriate officers. It is therefore further proposed that the Secretary of State should be advised that responsibility for any guaranteed sterling exchange rate
rate for the pensions of members of HMOCS in Hong Kong should fall entirely upon the shoulders of HMG.
Likely Staff Reaction
17
An announcement that there will be a General Compensation Scheme for members of HMOCS in Hong Kong should do much to maintain morale among pensionable expatriate officers especially those in the Police Force. However, there remains
remains a strong feeling among senior local officers that they too have rendered long and loyal service to the Crown and should, therefore, be allowed to retire with compensation before 1997. Although the likelihood of a General Compensation Scheme being established is known within the service, the announcement of it would undoubtedly prompt renewed calls from local officers, particularly in the Police Force, for similar treatment.
Public Reaction
18
If the Hong Kong Government were to fund a General Compensation Scheme for overseas officers this would be quite unacceptable to the people of Hong Kong and could cause a storm of
of protest. The emotive argument that local
that local public funds were being used to honour an obligation made by HMG to a minority of public servants would be difficult to counter.
SECRET