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CONFIDENTIAL
HONG KONG: HER MAJESTY'S OVERSEAS CIVIL SERVICE (HMOCS)
The Problem
1. HMG have a standing commitment, 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. In practice HMG have ensured the payment of compensation and the provision of sterling safeguards for pensions in the case of every other dependent territory moving along the path to independence. Hong Kong HMOCS members expect comparable treatment: and HMG have recognised publicly that Hong Kong's position raises similar issues to those of other colonies approaching independence. (A summary of White
Paper undertakings and Ministerial statements on the public
record is at Annex A).
2.
The arrangements introduced in previous territories always included a sizeable 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 for them. However, in all cases since 1971 HMG have funded the arrangements (through aid).
3.
But
The result in other territories was a rapid departure of HMOCS members at independence or shortly thereafter. our 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 would involve heavy financial and political costs
for HMG.
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