CONFIDENTIAL
HMG's influence on the way the benefits
benefits are handled.
anxiety about whether public service pensions will be
Chinese sovereignty extends to local officers as well
HMOCS. HMG will therefore face pressure
elsewhere to look after local officers as
6.
-
well.
as it
Secondly, the
secure under
as members of
has
not done
of employment
serve beyond
Hong kong by
The 1954 White paper undertakings about terms after self-government for members of HMOCS who
independence are partly discharged in the case of
Section IV of Annex 1 of the draft agreement which includes a 'no
detriment' provision in respect of all public service which precedes the resumption of sovereignty. Pension rights under Hong legislation (which makes no distinction between local officers
and HMOCS) are similarly safeguarded. Given these measures, five further questions arise in respect of HMOCS.
Kong
SHOULD THERE BE A COMPENSATION SCHEME
SCHEME FOR HMOCS OFFICERS AFFECTED BY CONSTITUTIONAL CHANGE IN HONG KONG, AND IF SO WHO SHOULD FINANCE
IT?
7.
There is a good argument for proceeding now to devise compensation arrangements for Hong Kong. They may need to be used in the fairly near future i f the Hong Kong Government introduce
further arrangements for localisation, for example in the senior ranks of the Administrative Service and the Police Force. Progress here would also help to reas sure staff that HMG was responding to
their concerns,
might lessen the pressure in other, more
difficult areas. It is therefore recommended that we should aim to
establish suitable compensation arrangements, and that officials should enter into discussions with the Hong Kong Government.
8.
I t i s
and
considered that Hong Kong is well able to afford to meet the costs of this and that any pressure for HMG to do so should be resisted The maximum cost is estimated at a one
million at current prices and exchange rates.
be spread over a number of years.
off payment of £25
It would be likely to
SHOULD ARRANGEMENTS BE INTRODUCED TO SAFEGUARD THE STERLING VALUE OF PENSIONS EARNED FROM HMOCS SERVICE UP TO 1997?
9.
The standard
arrangement
enables the pension to be freely
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