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7 MDHOAN 1190
ON PERMANENT AND PENSIONABLE TERMS OF SERVICE. DESPITE HKG'S LOCALISATION POLICY, MORE THAN 400 ARE LIKELY STILL TO BE IN SERVICE IN 1997. IN ADDITION APPROXIMATELY 240 OFFICERS SERVING ON CONTRACT TERMS, WHOSE INITIAL APPOINTMENT WAS MADE BEFORE MARCH 1985, RETAIN THE RIGHT TO APPLY TO TRANSFER TO PERMANENT AND PENSIONABLE TERMS OF SERVICE AND THEN TO ENROL IN HMOCS.
5. HMG HAVE HISTORICALLY ACCEPTED A SPECIAL OBLIGATION TOWARDS MEMBERS OF HMOCS WHEREVER THEY SERVE. THIS OBLIGATION WAS SET OUT IN 1954 AND 1960 POLICY STATEMENTS BY HMG AND ESTABLISHED THROUGH PRACTICE AND PRECEDENT IN ALL OTHER DEPENDENT TERRITORIES. THE MAIN POINTS WHICH WE CONSIDER TO BE RELEVANT IN THE HONG KONG CONTEXT ARE THAT WHEN, AS A RESULT OF CONSTITUTIONAL CHANGE, THE SECRETARY OF STATE CEASES TO HAVE AUTHORITY OVER HMOCS OFFICERS AND THEY COME UNDER THE AUTHORITY
OF A SUCCESSOR GOVERNMENT:
A) HMG SHOULD ENSURE THAT ALL OFFICERS RECEIVE COMPENSATION
TO MARK THE ENDING OF THEIR HMOCS STATUS AND OF THE SPECIAL RELATIONSHIP WITH THE SECRETARY OF STATE WHICH THAT ENTAILS.
B) HMG SHOULD ENSURE THAT ALL OFFICERS WHO ARE RETAINED IN THE SERVICE OF THE PREVIOUSLY DEPENDENT TERRITORY SHOULD ENJOY TERMS OF SERVICE NO LESS FAVOURABLE THAN BEFORE, INCLUDING WITH RESPECT TO SALARIES, ALLOWANCES, BENEFITS AND PENSIONS ENTITLEMENTS:
C) HMG SHOULD ENSURE THAT ARRANGEMENTS ARE MADE TO PROVIDE FOR
THE PROTECTION OF THE STERLING VALUE OF THE FORMER HMOCS
OFFICERS' PENSIONS, THROUGH THE INTRODUCTION OF A FIXED STERLING EXCHANGE RATE ADJUSTED.
6.
THE HMOCS OBLIGATION HAS BEEN HONOURED WITHOUT EXCEPTION IN
ALL BRITISH DEPENDENT TERRITORIES UPON A CHANGE OF SOVEREIGNTY.
HOWEVER THE ISSUES ARE COMPLEX AND CONSIDERATION OF THEM IS TAKING TIME. THE UK GOVERNMENT HAVE THEREFORE NOW DECIDED TO ADDRESS THE DIFFERENT ELEMENTS SEPARATELY, BEGINNING WITH THE QUESTION OF COMPENSATION. CONSULTATIONS WITH HMOCS OFFICERS ON THIS SUBJECT WILL BEGIN IN HONG KONG SHORTLY.
7. THE EXACT FORMAT OF PREVIOUS COMPENSATION SCHEMES VARIED FROM
TERRITORY TO TERRITORY. IN SOME CASES THE SCHEME WAS CAST PARTLY AS AN INDUCEMENT SCHEME TO ASSIST IN THE RETENTION OF THESE OFFICERS
BY THE SUCCESSOR GOVERNMENT. IN THE CASE OF HONG KONG WE INTEND
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