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THE FORM OF COMPENSATION
3. HMG have an obligation to see that HMOCS officers are appropriately compensated for the change in their status arising from the transfer of sovereignty in 1997. This obligation vas enshrined in a White Paper of 1960, which set out the general principles governing the treatment of
MOCS officers in territories moving towards constitutional change (see Annex). There are precedents for the granting of compensation in the case of every other dependent territory moving along that path. Since 1960 HMG have invariably made substantial contributions to, and in most cases fully funded, compensation schemes. Hong Kong HMOCS officers expect comparable treatment.
4. In the past, General Compensation Schemes have offered HMOCS officers the option to retire at independence with immediate payment of pension and compensation. Since 1960, officers opting to stay on remained eligible to retire with immediate payment of pension, and received compensation over a six year period. Hong Kong's circumstances are of course very different from previous cases because it will not become independent. We have entered into a binding treaty commitment with the Chinese government to bring about a smooth transition in 1997. We are determined to uphold our commitment to Hong Kong. Any scheme should therefore be designed to offer a positive inducement to members of HMOCS to stay on. I envisage that those who leave around
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