1.00 ther
Annex D sets out these considerations in greater detail, and
produces "best", "worst" and "probable" case estimates. Although the figures are illustrations they make clear the relative differences in cost between the Scheme approved by Ministers in
1988; the enhanced "post Tiananmen" Scheme; and the traditional
Scheme.
Consulting the Chinese
18.
Since the scheme will entail payments made by HMG to civil
servants of the SAR Government, this is clearly an issue on which
the Chinese could legitimately claim they should be properly
consulted. They could also point to the precedent established by consultations over the limited compensation scheme, which was the
subject of discussion at several Plenary meetings of the JLG.
Against this background and our decision to step up the level of
consultation with the Chinese, it would not be advisable to think in
terms of simply informing the Chinese or of merely going through the
motions of consultations.
19.
The Chinese may suspect that the scheme is yet another attempt by Britain to continue to exert her influence in Hong Kong after
1997. We will therefore need to take great care to try to allay
Chinese suspicions before announcing the scheme. We could make the point that this is a UK scheme funded by HMG in recognition of our special obligations to members of HMOCS. These obligations were entered into 30 years ago and were not drawn up specifically with Hong Kong in mind. The whole reason for having a scheme which involves payments after 1997 is to help to ensure that Hong Kong remains stable and prosperous both before and after 1997 by encouraging expatriates in the civil service to remain in place. A normal compensation scheme which involved a substantial lump sum payment in 1997 would encourage a big outflow of expatriates in 1997, to the considerable detriment of the civil service.
20.
As far as the tactics for approaching the Chinese are
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