SECRET
нка 23311
112
166505
MDHOAN 1317
SECRET FM FCO
TO DESKBY 130030Z UKREP JLG HONG KONG
TELNO 17
OF 12180OZ MARCH 92
INFO DESKBY 13003OZ HONG KONG, PEKING
TOP COPY Q DIST?
HONG KONG HMOCS ARRANGEMENTS: BRIEFING THE CHINESE
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1. UNLESS YOU, HONG KONG OR PEKING SEE OBJECTION TO THE SPEAKING NOTE IN MIFT (PARTICULARLY THE OMISSION OF ANY REFERENCE TO STERLING SAFEGUARDS), WHICH WE HAVE AGREED NEGOTIATION WITH THE TREASURY, WE SHOULD BE GRATEFUL IF YOU WOULD NOW URGENTLY BRIEF GUO FENGMIN, USING THIS SPEAKING NOTE.
2.
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IF YOU JUDGE IT DESIRABLE TO SAY MORE ABOUT THE TIMING FACTORS, POSSIBLY IN RESPONSE TO QUESTIONING ABOUT THIS ABOUT BY GUO, YOU SHOULD DRAW ON THE FOLLOWING:
''THE OBLIGATION TO INTRODUCE A COMPENSATION SCHEME FOR HMOCS OFFICERS IS A CONSTITUTIONAL ONE WHICH HMG CANNOT SHIRK. THIS IS A PROBLEM LEFT OVER FROM HISTORY WHICH NOW REQUIRES SOLUTION. IT HAS BEEN OUTSTANDING SINCE 1985. THE NEED TO CONCLUDE THEM NOW HAS BEEN REINFORCED BY THE IMMINENT APPROACH OF THE DEADLINE DATE FOR ALL HONG KONG CIVIL SERVANTS TO OPT WHETHER OR NOT TO JOIN THE NEW PENSION SCHEME. AS THE TERMS OF THE HMOCS SCHEME MAY HAVE A BEARING ON WHICH SCHEME THE OFFICERS CHOOSE, AND FOR CONTRACT OFFICERS ON WHETHER THEY DECIDE TO BECOME PENSIONABLE, WE SHOULD PROMULGATE THE SCHEME WELL BEFORE JUNE THIS YEAR. WE HAVE STATED THAT WE SHALL OPEN CONSULTATIONS WITH HMOCS OFFICERS BEFORE EASTER.'
3.
IF YOU JUDGE IT DESIRABLE TO GIVE GUO A CLEARER IDEA OF HOW THE SCHEME MIGHT WORK YOU SHOULD SAY://''THIS WILL BE SUBJECT TO CONSULTATION WITH THE OFFICERS CONCERNED. AT THIS STAGE, I CAN GIVE ONLY AN INDICATIVE EXAMPLE: THAT FOR ONE TYPICAL OFFICER THE MAXIMUM TOTAL ENTITLEMENT MIGHT BE ABOUT ONE AND HALF TIMES ANNUAL SALARY. PART OF THIS WOULD BE PAYABLE IN 1997 AT THE TIME WHEN THE SECRETARY OF STATE'S AUTHORITY IS REMOVED. THE REMAINING PART WOULD BE PAID AT A LATER STAGE, AND ONLY ON CONDITION THAT THE OFFICER CONCERNED WAS CONTINUING IN THE SERVICE OF THE HONG KONG SARG.'
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