CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE F C O
TELNO 3819
OF 10090OZ DECEMBER 91
CONFIDENTIAL
HKB 23.3/
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
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PERSONAL FOR COX, HKD FROM GOVERNOR
PEKING PERSONAL FOR AMBASSADOR
UKREP PERSONAL FOR GALSWORTHY
1224
YOUR TELNO 2061: HONG KONG HMOCS
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1. WE HAVE BEEN GIVING SOME THOUGHT TO WHAT THE REACTION WOULD BE TO A HYPOTHETICAL REDUCED HMOCS PACKAGE COMPRISING:-
(A)
A COMPENSATION SCHEME ON THE LINES ALREADY ENVISAGED:
(B)
(C)
2.
NO STERLING SAFEGUARDS, BUT A REAFFIRMATION OF THE CARR ROBERTSON AND A PROMISE TO KEEP THE MATTER UNDER REVIEW TO THE YEAR UP TO 1997: AND
IMPROVEMENTS TO SPOS.
THERE ARE TWO DISTINCT AUDIENCES TO BE CONSIDERED. THE FIRST CONSISTS OF THE YOUNGER HMOCS OFFICERS I.E. THOSE WHO IN THE NORMAL COURSE WOULD EXPECT TO SERVE BEYOND 1997 AND WHOM WE ARE TRYING TO PERSUADE TO STAY BEYOND THAT DATE. THIS GROUP'S MAIN CONCERN IS TO SEE THE INTRODUCTION OF COMPENSATION ARRANGEMENTS. THEY MIGHT NOT BE TOO WORRIED IF NOTHING WAS DONE ABOUT STERLING SAFEGUARDS AT THIS STAGE. BUT ONCE A COMPENSATION SCHEME WAS IN PLACE, THEY WOULD BE LIKELY TO TURN THEIR ATTENTION TO PRESERVING THE VALUE OF THEIR FUTURE PENSIONS, AND STERLING SAFEGUARDS WOULD ALSO BECOME AN ISSUE WITH THEM.
3=
THE FACT THAT YOUNGER OFFICERS ARE MORE INTERESTED IN COMPENSATION THAN STERLING SAFEGUARDS DOES NOT OF COURSE MEAN THAT THEY WILL BE CONTENT WITH THE PACKAGE. THE COMPENSATION SCHEME PROPOSED WILL FALL SHORT OF THEIR EXPECTATIONS. DOUBTLESS THEY WILL SEEK TO OBTAIN IMPROVEMENTS TO IT.
4. THE SECOND AND LARGER AUDIENCE CONSISTS OF SERVING HMOCS OFFICERS WHO WILL REACH RETIRING AGE BEFORE 1997 AND EXISTING
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