CODE 18-77

Mr Ricketts

CONFIDENTIAL

Reference..........

HKCC 012/gence

D

CHINESE BOOK ON THE BASIC LAW

WECE

08 JAN

DESK

INDEX

1.

You may like to see Mr Wye's minute of 26 November and Mr Bunten's and Mr Stone's comments on it. There seem to be three points of interest:

(a) an indication that the Chinese have still not decided whether "public servants" in BL 99 should include judges and LegCo members. Miss Brooks' reading is that they are not included, but if they are included then the Chinese may be able to argue that judges must have permanent resident status;

(b) a reminder that the BL opened the possibility of (Chinese national) public servants "below a certain rank as prescribed by law" being non-residents, eg mainland imports;

(c) a suggestion that after 1997 foreign nationals at present in public service will lose the "privileges" they enjoy compared with locals, eg salary and benefits such as housing. In fact the BL and JD provide for removal of "any provisions for privileged treatment of foreign nationals" in certain areas such as recruitment and promotion (BL 103/ JD 78), but existing public servants should retain "pay, allowances, benefits and conditions of service no less favourable than before" (BL 100/JD 72)

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2. On (c) Mr Stone points out that some expatriates do still enjoy some advantages regarding housing, leave, home passages and children's education and that HKG would not vary such terms and conditions to the detriment of present beneficiaries. I think that if the SARG were to end any such privileges unilaterally, HMOCS members and others would have an extra ground for demanding that HMG intervene, both on general grounds and because of the apparent breach of the JD.

3.

I think we should draw the passage to the attention of HKG and UKREP JLG and invite comments. We might also ask whether any thought has been given to building on the JD and BL provisions for British or foreign advisers in Government departments. There might be advantage in having some high-powered advisers in place and accepted before 1997. might also facilitate early localisation, eg of the CS job. But on the other hand it would confuse lines of management and could encourage the nomination of second-rate Secretaries

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NC2AAT

CONFIDENTIAL

3.

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