SECRET
146515
MDHIAN 5846
REMOVAL OF THE SECRETARY OF STATE'S AUTHORITY IN 1997. THE OTHER PART WILL BE PAYABLE AS AN INDUCEMENT TO PERSUADE OFFICERS TO CONTINUE IN THE SERVICE OF THE HONG KONG 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 HAVE AGREED TO CONTINUE TO SERVE BEYOND 1 JULY 1997.
THE HONG KONG GOVERNMENT WILL NOT BE INVOLVED IN THIS SCHEME AND WILL NOT BE INVOLVED IN ITS FUNDING IN ANY WAY. THERE WILL BE NO INDUCEMENT OR INCENTIVE FOR OFFICERS TO RETIRE EARLY OR TO OTHERWISE LEAVE THE SERVICE BEFORE 1997. INDEED THE OPPOSITE
WILL BE TRUE.
IN VIEW OF THE CONSTITUTIONAL OBLIGATION HMG IS OBLIGED TO INTRODUCE A COMPENSATION SCHEME. THE SCHEME HAS HOWEVER BEEN CAST
TO ENCOURAGE THE MAXIMUM CONTINUITY OF SERVICE BEYOND 1997.
ENDS
WILSON
YYYY
MAIN
29
HKD
FED
NEWS D RMD
PS/LORD CAITHNESS
NNNN
DISTRIBUTION
29
SIR J COLES
MR BURNS
LEGAL ADVISERS//MISS BROOKS ODA//MR KERBY
ODA//MR FISH
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