84.1/sb/nt1.27.2
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
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 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.
3.
should contribute to
Measures introduced to these ends
ensuring a smooth transition in 1997 and should encourage
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 UK 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.
5. HMG recognise the desire of HMOCS officers for some safeguard
on the sterling value of their pensions after 1997. The provision by the UK of sterling safeguards in other cases was essentially an
aid measure, which is not appropriate in the circumstances of Hong
Kong. We have discussed the issues with the HKG. While aspects of
this question remain under consideration by the HKG, it would be