SECRET
166521 MDHOAN 1324
OF THE DETAILS OF OUR COMPENSATION/ INCENTIVE SCHEME AND TO GET
A FAIR WIND FOR FUTURE CABINET DECISIONS ABOUT STERLING SAFEGUARDS. TO THOSE ENDS WE MUST BE ABLE TO DEMONSTRATE HERE THAT HKG ITSELF ALSO CONTINUES TO EXPLORE CREATIVELY ALL POSSIBLE OPTIONS FOR INDUCING KEY OFFICERS TO STAY ON, WHETHER ON CONTRACT TERMS OR (AS YOU WOULD PRESUMABLY PREFER) ON PENSIONABLE TERMS. WE HAVE IN THE PAST POINTED TO HKG'S HEAVY EXPENDITURE ON THE LOCALISATION SCHEME (IE. LIMITED COMPENSATION) AND ON THE SPECIAL BRANCH SCHEME. WE ALSO KNOW OF THE JUDGES' AND LAWYERS' IMPROVED PACKAGES. BUT WE WOULD BE GRATEFUL FOR ANY FURTHER AMMUNITION YOU CAN GIVE US.
8.
WE ACCEPT THAT AT THIS LATE STAGE, YOU CANNOT PICK OUT EXPATRIATES FOR SPECIAL TREATMENT, BUT WE WONDER WHETHER THERE ARE OTHER WAYS IN WHICH YOU COULD IMPROVE CONDITIONS OF SERVICE FOR SOME OFFICERS, PARTICULARLY IN THE POLICE. WE CAN SEE THAT ANY IMPROVEMENTS IN GENERAL POLICE TERMS OR IN THE TERMS OF POLICE OFFICERS OF CERTAIN RANKS COULD HAVE REPERCUSSIONS FOR OTHER DISCIPLINED SERVICES, BUT WE ASSUME THAT IT SHOULD BE POSSIBLE TO HOLD THE LINE AGAINST OTHER CIVIL SERVANTS. TARGETING INEVITABLY CAUSES GRUMBLING, EVEN A FURORE, WITHIN THE PUBLIC SERVICE, BUT, AS SEEN FROM HERE, THAT IS NOT IN ITSELF A REASON FOR RULING OUT THE MOST COST-EFFECTIVE USE OF PUBLIC FUNDS. HONG KONG PUBLIC CONCERNS SEEM TO BE TARGETED ON THE
POLICE FORCE. IS THERE A POSSIBILITY OF YOUR OFFERING ALL POLICE OFFICERS ON CONTRACT TERMS (WHETHER LOCAL OR EXPATRIATE, HMOCS- POTENTIAL OR NOT) THE OPPORTUNITY TO TRANSFER TO LONGER CONTRACTS WITH ENHANCED GRATUITIES? WOULD IT BE NECESSARY TO
DISCUSS ANY SUCH PROPOSAL WITH THE CHINESE? CONTRACTS WILL PRESUMABLY IN DUE COURSE STRADDLE 1997. (WE ASSUME, BUT HAVE NOT SOUGHT LEGAL ADVICE ON THE POINT, THAT EXPATRIATES' PREFERENTIAL HOUSING AND PASSAGE BENEFITS ARE PROTECTED BY JD 72
AND ARE NOT AFFECTED BY JD 78 (ALTHOUGH A RECENT CHINESE
COMMENTARY ON THE BASIC LAW IMPLIED THE OPPOSITE)).
9.
IN ANY CASE WE THINK IT WOULD BE OPEN TO US TO SAY THAT THE
HMOCS ARRANGEMENTS WE ENVISAGE WILL APPLY ONLY FROM THE DATE OF OFFICERS' ENROLMENT IN HMOCS. THUS, FOR EXAMPLE, THE COMPENSATION FACTORS FOR AN OFFICER WHO OPTS THIS SPRING FOR PENSIONABLE TERMS, AND IS ENROLLED IN HMOCS, WILL BE THOSE FOR AN OFFICER WITH FIVE YEARS' SERVICE (1992-97), EVEN IF HE HAS
''BOUGHT BACK''HONG KONG PENSION ENTITLEMENT FOR EARLIER YEARS.
THE SAME PRINCIPLE WOULD HAVE TO APPLY TO OFFICERS WHO IN PAST