SECRET
152443
MDHIAN 6027
SARG. ALL ELEMENTS WILL BE WORKED OUT WELL BEFORE 1997 AND 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.
10. THE HONG KONG GOVERNMENT WILL NOT BE INVOLVED IN THIS COMPENSATION/INCENTIVE SCHEME AND WILL NOT BE INVOLVED IN ITS FUNDING IN ANY WAY. THERE WILL BE NO INDUCEMENT OR INCENTIVE FOR OFFICERS TO RETIRE EARLY OF TO OTHERWISE LEAVE THE SERVICE BEFORE 1997. INDEED THE OPPOSITE WILL BE TRUE.
11. IN VIEW OF THE HISTORICAL OBLIGATION HMG IS OBLIGED TO INTRODUCE A COMPENSATION SCHEME. THE SCHEME HAS HOWEVER BEEN CAST TO ENCOURAGE THE MAXIMUM CONTINUITY OF SERVICE BEYOND 1997.
WILSON
YYYY
MAIN
29
HKD
FED
NEWS D
RMD
PS/LORD CAITHNESS
NNNN
DISTRIBUTION
29
SIR J CULES
MR BURNS
LEGAL ADVISERS//MISS BROOKS
ODA//MR KERBY ODA//MR FISH