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CONTRIBUTION TO HONG KONG HMOCS PAPER:

ELEMENTS OF A PACKAGE

(A) COMPENSATION

Replace paragraphs 8 and 9 with:

In 1988 Ministers

accepted

in principle the reasons for a

compensation scheme for HMOCS members in Hong Kong funded by HMG,

though no commitment was given as to how these costs should be

met. Officials have since been looking, in consultation with the

HKG, at the permutations of what a scheme might cover, .but no

agreement has yet been reached on details or likely costings. An

FCO estimate of £10m to £20m at the time of the 1988 Ministerial

3 exchanges has since been revised up to £20 to £40m, but this can

only be an indicative guide. Details are given in Annex C. (T The

Treasury will need to be satisfied that any proposal minimises the

potential cost implications.

Twe

?

old

pavai 9.

1985

package?

The Governor has pressed for an early and separate announcement of

a compensation scheme in line with the 1988 Ministerial agreement,

when compensation was looked at in isolation and not as part of a

package. The scheme proposed was more modest than a traditional

compensation scheme as its key objective was

encourage HMOCS

officers to

stay on through the 1997 changeover.

with traditional

compensation

schemes,

to

designed

It was not, as

not

to compensate

??

HMOCS for loss of career as the Joint Declaration guarantees that

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