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to vote in a certain way will have disappeared because official and
appointed members will no longer make up a majority.
What form of Scheme?
X
X
14. One option which was previously considered, and rejected, by Ministers is to introduce a "traditional" form of General
Compensation Scheme (see paras 6 and 7 above) which would provide all HMOCS members still serving in Hong Kong in 1997 with an actuarially assessed sum (averaging about £70,000 at current values) payable in one or more installments and immediate payment of pension to those who wish to retire in or after 1997. The Joint Declaration provides for a continuing career to these officers. Furthermore,
traditional compensation, while in some cases it contained an
element of inducement to stay on after 1997, would infact rather encourage officers to leave since it would permit them to obtain
early payment of pension and full compensation, whether or not they remained in service. This would not take fully into account that aspect of the 1960 White Paper which required schemes to provide an inducement to continue serving. It would also, arguably not be in keeping with our commitment under the Joint Declaration to "ensure a smooth transfer of Government in 1997 (JD 31)"
15
16. Ministers therefore concluded in 1988 that a modified
compensation Scheme, providing a positive incentive to expatriates to stay on after 1997 but without the full benefits for loss of
career given under a "traditional" Scheme, would, in political terms, offer the best prospect of reconciling the conflicting interests. They endorsed a Scheme which would provide a limited payment in 1997 to compensate for the loss of the Secretary of State's protection plus 9 further annual payments for each year that an HMOCS member remained in service after 1997. This would fall
short of what HMOCS officers in Hong Kong would hope to receive. But Its effect would also be consistent with that part of the 1960 White Paper which was designed to encourage expatriates to remain in
service.
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