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117047 MDHIAL 563
5. WE EXPLAINED WHY IT WAS IMPOSSIBLE FOR HKG TO TRANSFER THE
CAPITALISED VALUE OF HMOCS PENSIONS TO HMG. IT WAS NOT THE COST, ALTHOUGH THIS SHOULD NOT BE DISMISSED, BUT THE POLITICAL REALITIES OF HONG KONG'S PRESENT SITUATION AND THE IMPLICATIONS OF THIS FOR THE WHOLE CIVIL SERVICE LOCAL AS WELL AS EXPATRIATE. WITH THE APPROACH OF 1997, SECURITY OF PENSIONS HAD BECOME A MAJOR ISSUE WITH THE CIVIL SERVICE GENERALLY. LOCAL OFFICERS, JUST AS MUCH AS OVERSEAS OFFICERS, HAD BEEN SEEKING TO HAVE THEIR PENSIONS CAPITALISED AND PAID OUT IN A LUMP SUM, OR INTO OFF- SHORE FUNDS. THE HKG COULD NOT PAY OUT PUBLIC FUNDS TO PROTECT THE PENSIONS OF ONE SMALL GROUP OF CIVIL SERVANTS, PARTICULARLY A GROUP WHICH WAS ONLY DISTINGUISHABLE THROUGH ITS RELATIONSHIP WITH HMG. THE SPECIAL OBLIGATION TOWARDS MEMBERS OF HMOCS HAD BEEN UNDERTAKEN BY HMG, NOT THE HONG KONG GOVERNMENT, AND RESTED WITH HMG. AN ARRANGEMENT TO PAY OVER TO HMG THE CAPITALISED VALUE OF HMOCS PENSIONS IN ORDER TO PROVIDE PROTECTION FOR THOSE PENSIONS WOULD BE DIVISIVE AND TOTALLY UNACCEPTABLE TO EXECUTIVE COUNCIL. IT WAS ALSO INCONCEIVABLE THAT THE FINANCE COMMITTEE OF THE LEGISLATIVE COUNCIL WOULD AGREE TO PROVIDE FUNDS TO ASSIST A GROUP OF BRITISH EXPATRIATES AT THE EXPENSE OF LOCAL PROJECTS. BOTH EXCO AND LEGCO WOULD SEE THE RESPONSIBILITY FOR HMOCS AS LYING SQUARELY WITH HMG.
6. WE EXPLAINED THAT WE BELIEVED THAT PAYING THE CAPITALISED VALUE OF PENSIONS OVER TO HMG WOULD ALSO BE UNACCEPTABLE TO THE CHINESE. HOWEVER PRESENTED, AND HOWEVER ILLOGICAL, THIS WOULD BE SEEN AS ASSET STRIPPING AND A VOTE OF NO CONFIDENCE IN THE JOINT DECLARATION AND THE FUTURE SARG. THE CHINESE TOO, WOULD CONSIDER HMOCS ENTIRELY A MATTER FOR HMG AND WOULD NEVER AGREE TO BE A PARTY TO PROVIDING ASSISTANCE TO A GROUP OF EXPATRIATE COLONIAL OFFICIALS. EVEN WITH HMG MEETING THE BILL, THERE COULD BE PRESENTATIONAL, PROBLEMS WITH THE CHINESE: BUT AT LEAST THE LINE COULD BE TAKEN THAT HMG WAS LOOKING AFTER ITS OWN OFFICIALS IN ACCORDANCE WITH HISTORICAL PRACTICE AND PRECEDENT. RICKETTS (HKD) AND PAUL (UKREP JLG) WERE PRESENT FOR DISCUSSION OF THE CHINA DIMENSION, AND ENDORSED THE LINE TAKEN BY US.
7. DURING THE VISIT, THE TEAM ALSO MET COMMITTEE MEMBERS OF THE EMBRYO HMOCS ASSOCIATION AND THE PENSIONABLE SERVICE COMMITTEE OF THE ASSOCIATION OF EXPATRIATE CIVIL SERVANTS. BOTH GROUPS STRESSED THAT THEY CONSIDERED THAT HMG HAD A SPECIAL OBLIGATION TO MEMBERS OF HMOCS. IN THE LIGHT OF STATEMENTS BY MINISTERS, THEY EXPECTED TO RECEIVE SIMILAR TREATMENT TO MEMBERS OF HMOCS IN OTHER DEPENDANT TERRITORIES WHEN THESE HAD MOVED TO INDEPENDENCE:
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