CONFIDENTIAL

Latest version

24/1

HONG KONG: HER MAJESTY'S OVERSEAS CIVIL SERVICE (HMOCS)

E.W

FILE

THE PROBLEM

1. HMG have commitments, set out in two White Papers of

1954 and 1960, to ensure that HMOCS members are compensated and their interests safeguarded in the event of a change in their status arising from constitutional change. A summary of White Paper undertakings and Ministerial statements on

the public record is at Annex A.

2.

The arrangements introduced in previous territories have included a payment of compensation to recognise the

loss of the Secretary of State's protection and of career

prospects; the right to retire at independence with early

payment of pension; and a sterling safeguard for that

pension. These arrangements were usually made in a Public Officers Agreement under which the newly independent

government undertook to pay part. However, HMG have taken over the funding of virtually all these arrangements (as an

aid measure).

3

Hong Kong is rich, and there are other differences

between the situation there and in the territories which

were able to opt for independence. But, in the light of the White Paper commitments, subsequent practice and Ministerial

statements recognising that the change of sovereignty in

Hong Kong raises similar HMOCS issues to those in territories approaching independence, Hong Kong HMOCS officers expect comparable treatment.

Our

4. In other territories there was a rapid departure of HMOCS members at independence or shortly thereafter. objective in Hong Kong is to encourage as many HMOCS members as possible to stay in their posts up to 1997 and beyond, to help secure a stable and prosperous Hong Kong and a smooth transition in 1997. A collapse of confidence in Hong Kong

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