b) in order to achieve the best use of public funds, and in line
with our responsibilities under the Joint Declaration, the
Scheme should be structured in the way most likely to provide an
incentive to HMOCS officers continue to serve in Hong Kong well
after 1997;
c) we should aim to announce the scheme as soon as possible, having cleared our lines with the Chinese and consulted the
staff associations in Hong Kong.
ODA agree.
The
3. I submit a draft minute to the Prime Minister.
Governor of Hong Kong is also content with this approach, which we
have discussed with Treasury officials.
BACKGROUND
Historical Background: Obligations to Her Majesty's Overseas Civil
Service (HMOCS)
4. HMG have long acknowledged that they have a special obligation
towards members of HMOCS. The 1954 White Paper, which established HMOCS, stated that they were entitled to expect that "in the event
of premature retirement resulting from constitutional change, they will receive compensation from the government of the territory
concerned".
5. The 1960 White Paper set out the general principles that members of HMOCS should be entitled to retire with compensation for
the loss of a career under the protection of the Secreary of State, and that compensation schemes should provide an inducement to officers to continue to serve so long as their services were
required. It also announced a scheme of financial assistance, including help with the cost of compensation, for dependent territories. Hong Kong, along with the Bahamas, Bermuda and Brunei, was excluded "at least for the present". The relevant extracts are
attached.
WEDABH/2
CONFIDENTIAL