ד
aefl.mr/kw/7.4.2.
they can remain in post under same terms and
But promotion limited
conditions.
It
would not, therefore, come under the strict terms of the 1954
White Paper which
White Paper.
offers compensation "in the event of
premature
retirement"; and Hong Kong is explicitly excluded from the 1960 No.
Nonetheless, a scheme along the lines of the one
outlined in Annex C may fall short of HMOCS members' expectations.
It might lead to further calls for compensation and other benefits
such as a sterling safeguard. It could be argued, however, that
HMOCS members would be very hard pressed to match their salaries
elsewhere, and a limited amount of compensation would encourage
them to stay on. The Chinese and HMOCS staff associations would
need to be informed of our intentions before any announcement.
Changes to Annex C:
COMPENSATION
ARRANGEMENTS:
BACKGROUND
AND
PROPOSALS
Replace paragraph 12 with:
Treasury have
not commented
The Treasury will need to be satisfied that the scheme will
meet our objectives at minimal cost. The precise details,
such as the numbers targeted and the period of payments, have
therefore yet to be discussed. The final costs might
therefore be lower than those indicated above. For instance,
it would be necessary to avoid any open-ended commitment by
stating that the compensation was based on 1991 Hong Kong
salary levels and would be paid in sterling at the average
exchange rate for 1991. The value thus derived could then
be uprated annually to take account of the movement in the
RPI.
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