CONFIDENTIAL
In the final analysis however, the Chinese could not block the scheme: the obligations of HMG to HMOCS officers are a matter for us and we would in the end have to decide ourselves how those
obligations should be met.
CONSULTATION WITH THE LOCAL STAFF ASSOCIATIONS
5.
There would also have to be consultation with the staff
associations in Hong Kong. Such consultation is a requirement
laid down in the 1960 White Paper.
6. We must be prepared for widespread criticism by the local staff associations, the Overseas Service Pensioners' Association
and from Members of Parliament here. All concerned will no doubt
claim that the proposed scheme fails to fulfil our
responsibilities to HMOCS members in Hong Kong; that compensation
and the right to retire early with immediate payment of pension
have been granted in the case of all other British dependent
territories; and that the consideration that is given to
inducement to serve the SAR Government is out of all proportion
to the consideration given to compensation for loss of career
under the Crown.
7. In response, we could say that the proposed scheme had been designed to suit the particular circumstances of Hong Kong in a way which, to quote the 1960 White Paper, "reflects the interests
of both the officers and the Government concerned". The Joint
Declaration provides that expatriate officers may remain in
service with terms and conditions no less favourable than before
and the scheme adds a further incentive. Those who choose to
give up their career in 1997 would receive a deferred pension at normal retirement age. Any enhancement to this, such as the
immediate payment of pension, would be likely to encourage officers to leave Hong Kong service, as indeed it did in other territories where this provision applied.
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