SECRET
DESKBY 110030Z
time of transition. We therefore intend that the compensation scheme will be cast as both a compensation and an incentive scheme. In practical terms, and subject to consultation with HMOCS officers in Hong Kong, this might involve a maximum entitlement in total of about one and a half times the annual salary for a typical officer in 1997. A part of this would be payable as compensation in 1997 for the removal of the Secretary of State's authority: the remaing part would be paid at a later stage, and only on condition that the officers concerned were continuing in the service of the Hong Kong SARG. ALL elements will be worked out well before 1997 and will be paid by HMG direct. Although all figures will be worked out beforehand, officers concerned will not be given access to the inducement element unless they continue to serve beyond 1 July 1997.
in
8. HMG will brief the Chinese on other aspects of the arrangements for HMOCS officers before decisions are announced.
HURD
YYYY
ΜΑΙΝ
HKD
FED
NEWS DEPT
RMD
PS/LORD CAITHNESS
SIR J COLES
MR BURNS
ADDITIONAL
LEGAL ADVISERS//MISS BROOKS
ODA//MR KERBY
ODA//MR FISH
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