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pensions "on terms no less favourable than before". But the
value of the Hong Kong dollar is not fixed, and there is no
sterling safeguard or other special provision for HMOCS
members: indeed a separate provision indicates that "privileged treatment for foreign nationals" will not be
maintained. Moreover there is no general confidence in the
civil service that these clauses of the Joint Declaration
will be honoured (or that HMG could or would enforce them).
ELEMENTS OF A PACKAGE
(A) COMPENSATION
8.
In 1988 Ministers accepted the need for a compensation
scheme funded by HMG. Detailed proposals could not be taken
forward immediately, but officials have now refined earlier
proposals, in consultation with the Hong Kong Government. Details of the proposed low-cost scheme and extra background
are at Annex C. However the Treasury wish to discuss
further the details, such as whether the scheme should be
selective and targeted, with a view to minimising the costs.
9.
This scheme is more modest than a traditional
compensation scheme and is likely to fall short of HMOCs
members' expectations, but it addresses the White Paper obligation to provide compensation. The cost of the scheme is difficult to predict. The most likely figure is between
£20-30 million, with a maximum of £44 million. (These
figures are only indicative: depending on the details of
the scheme the cost might be lowever). In 1988 the cost
was estimated at £10 m to £20 m. The scheme at Annex C has
been designed to form part of a package, with a sterling safeguard (see next section) (and adjustment to UK pension supplement (SPOS) regulations (final section)). But if no
such package can be agreed, one option would be to introduce a compensation scheme only. Views differ on the impact this would have. It might buy some time with HMOCs officers.
Alternatively, however, HMOCS officers might see it as so
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