CONFIDENTIAL

continuing pensionable service in Hong Kong after

1997 are:

(a) eligibility to fill posts in other dependent

fill posts in other dependent territories; and

(b) eligibility of pensions earned in post-1997 service for British inflation-proofing (para 1) and for the application of exchange rate safe-guards negotiated for pre-1997 service (para 10).

17.

status

rown

Joint

The Chinese would certainly not

not accept the maintenance of HMOCS

after 1997, which, since its members are servants of the

would appear to be at variance with the statement in the Declaration that foreign nationals shall be employed only in their individual capacities and shall be responsible to the SAR HMG could however easily cover unilaterally the question of transfer to other dependent territories (such as they are in and after 1997).

Government.

is more difficult.

encourage officer

18. The retention of the benefits in para 16(b) is more This would

be in line with previous practice to

to

our policy should

for by the SAR

stay on after constitutional change. However, be to try to ensure that such benefits we re paid for government, otherwise the cost would fall to HMG; and it would be inconsistent for HMG to make such commitments to expatriate officers who were no longer in Crown Service while denying the same benefits to local officers for the Crown Service before 1997. There seems по alternative to deferring a decision on the retention of these benefits until we are better able to assess the case for helping the to retain the services of pensionable officers after

ог not the SAR Government would be

decision is therefore

SAR Government

1997, and to assess whether

willing to me e t the cost.

impossible before the 1990s.

A

probably

CONFIDENTIAL

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