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HM Treasury

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Andrew Burns Esq AUSS

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Foreign and Commonwealth Office

King Charles Street

London

SW1

WH 323

FAX

Parliament Street

London SWIP 3AG Telephone 071-270

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24 September 1991

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Dean it Burns.

HONG KONG: COMPENSATION/INCENTIVE AND PENSIONS HER MAJESTY'S OVERSEAS CIVIL SERVICE

ARRANGEMENTS FOR

Thank you for your letter of 13 September with which you enclosed a copy of Nigel Cox's letter to my predecessor Peter Mountfield.

As you say, these are complex issues. I am aware of the extensive discussions which have taken place between the FCO, the ODA and the Treasury.. I understand that the Hong Kong Government has also been involved in some of these discussions. You have now come forward with some specific proposals under three headings:

compensation/incentive payments for members of HMOCS serving in 1997 and thereafter;

safeguarding the sterling value of serving HMOCS members;

Supplementary payments for overseas service.

It would help us to evaluate your proposals if we could receive some further detailed information underlying the potential costs. In particular, I would be grateful if you could let

me have the following information on the compensation incentive scheme:

(i) summary information on the age profile, grades and salaries of HMOCS members in the Hong Kong Civil Service and police force (it would be helpful if you could distinguish between the two) and, separately, the same information for any staff in the civil service or police service who have the option of going over to HMOCS terms and conditions;

(ii)

details of the basis on which you propose the compensation/incentive sum would be calculated individual HMOCS officers;

for

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