}
011225Z
ADVANCED HD/HKD FOR DIST ADVICE FCOLN/HOKON 585 SUGGESTED LNMDAN 3798 HMLNAN 5800
SECRET
DD 120OZ FCOLN
TON TO FCOLN
011124Z APR
GRS 620
SECRET
FM HONG KONG
TO DESKBY 01120OZ FCO
TELNO 965
OF 011124Z APRIL 92
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
PERSONAL FOR RICKETTS, HKD
PEKING PERSONAL FOR AMBASSADOR
UKREP JLG PERSONAL FOR GALSWORTHY
YRTELNO 585 AND PEKING TELNO 470: HMOCS: DRAFT STATEMENT FOR CONSULTATIONS
1. ANSWERS TO YOUR QUESTIONS IN TUR, USING THE SAME PARAGRAPH NUMBERING, ARE AS FOLLOWS:
Mr Store
(A) LIMITED COMPENSATION SCHEMES WERE NORMALLY SUBSUMED IN HMOCS GENERAL COMPENSATION SCHEMES IN OTHER TERRITORIES. A GENERAL COMPENSATION SCHEME FOR THE LOSS OF THE SECRETARY OF STATE'S PROTECTION WOULD BE CONSIDERED TO COVER ANY LOSS OF CAREER PROSPECTS ASSOCIATED WITH A CHANGE OF SOVEREIGNTY. IN ADDITION, OUR LIMITED COMPENSATION SCHEME HAS PROVISIONS FOR HMOCS OFFICERS, AND A FEW LOCAL OFFICERS, TO RETIRE ON SENSITIVE SERVICE GROUNDS WHERE IT WOULD BE UNREASONABLE TO EXPECT THEM TO CONTINUE IN SERVICE AFTER 1997 UNDER CHINESE SOVEREIGNTY. CLEARLY THESE FEATURES WOULD NOT BE APPLICABLE AFTER 1997. IT WOULD OF COURSE BE OPEN TO THE SARG TO INTRODUCE A COMPENSATION SCHEME TO COVER FOREIGN NATIONALS SUPERSEDED FOR PROMOTION, BUT THERE MUST BE CONSIDERABLE DOUBT ABOUT WHETHER THEY WILL DO SO.
(B) DELAYED ACCESS TO INCENTIVE PAYMENTS WAS DISCUSSED IN AUGUST 1990, AS YOU SAY. WE SAW IT AS A POSSIBLE WAY TO ASSUAGE CHINESE FEARS OF AN EXODUS AND TO RECOGNISE CHINESE SENSITIVITIES ABOUT PAYMENTS BY HMG TO OFFICERS SERVING THE SARG. THE CHINESE HAVE SINCE BEEN TOLD THAT COMPENSATION WILL BE PAID FOR THE LOSS OF THE SECRETARY OF STATE'S PROTECTION IN 1997 AND THAT PAYMENTS WILL BE PHASED TO ENCOURAGE CONTINUITY OF SERVICE. ALTHOUGH THEY HAVE NOT RESPONDED YET, OUR ASSESSMENT IS THAT THIS ASPECT OF THE PROPOSAL WILL NOT BE A STICKING POINT. PEKING TELNO 470 (PARA 1) ON THIS SUBJECT OF TODAY'S DATE REINFORCES THIS ASSESSMENT. ON THE OTHER HAND, THE CURRENT MOOD IN THE HMOCS ASSOCIATION IS SUCH THAT ANY SUGGESTION OF DEFERRING PAYMENTS WOULD RAISE CONSIDERABLE AGITATION. THE ASSOCIATION IS AWARE THAT PAST PRACTICE ELSEWHERE HAS BEEN TO MAKE THE PAYMENTS WHEN THEY FALL DUE.
(C) OFFICERS ON CONTRACT ARE NOT MEMBERS OF HMOCS, NOR MEMBERS OF OUR OWN PERMANENT AND PENSIONABLE ESTABLISHMENT. THEY CAN HAVE NO REASONABLE EXPECTATION OF AN ANNOUNCEMENT ON STERLING SAFEGUARDS BEFORE EXERCISING THEIR OPTION. THEY HAVE LITTLE SYMPATHY FORM THE HMOCS ASSOCIATION AND ARE SEEN AS OFFICERS WITHOUT CAREER COMMITMENT WANTING THE BEST OF BOTH WORLDS. THE LARGE MAJORITY ARE IN THE POLICE, BUT WE ARE NOT AWARE OF ANY PARTICULAR TENSIONS BETWEEN THIS GROUP AND OTHER POLICE OFFICERS. WE SEE NO NEED TO SEND THEM A COPY OF THE STATEMENT SINCE THEY ARE NOT