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DRAFT STATEMENT ON HONG KONG HMOCS
1. Her Majesty's Government recognise that members of Her Majesty's Overseas Civil Service in Hong Kong wish to know as soon as possible how the Government intend to make provision for HMOCS in the special circumstances of Hong Kong's becoming a Special Administrative Region of the People's Republic of China of 1 July 1997.
2. The Joint Declaration and Basic Law provide good guarantees for continuity of service with pay, conditions and pensions on terms no less favourable than before 1997. Nonetheless the Government accept that HMOCS officers serving in Hong Kong on 30 June 1997 will also be entitled to a measure of compensation for the loss of the Secretary of State's protection and, to a certain extent, of career prospects. They also believe it desirable that there should be some safeguard of the sterling value of HMOCS officers' pensions.
3.
Measures introduced to these ends should contribute to ensuring a smooth transition in 1997 and should encourage maximum continuity in the Hong Kong public service after 1997, in order to maintain and preserve Hong Kong's economic prosperity and social stability. They should also be fair to the officers concerned, while involving the minimum necessary cost to the taxpayer.
4.
The issues are complicated, and despite intensive work the process of drawing up appropriate arrangements has taken longer than envisaged. The Government are grateful for the sense of responsibility and patience shown by HMOCS officers. The Government have now formulated a proposal for a scheme providing elements of incentive and compensation. We look forward to opening consultations about this with representatives of the officers concerned before Easter.
NC2AAZ/1
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