CONFIDENTIAL

STATEMENT ON BEHALF OF HMG IN OPENING CONSULTATIONS WITH

HMOCS REPRESENTATIVES IN HONG KONG

1. HMG have carefully considered how to make provision for HMOCS in the special circumstances of Hong Kong becoming an

SAR of the People's Republic of China on 1 July 1997. The

government have taken note of the representations they have

received from the members of the Association of HMOCS in

Hong Kong and other individual officers.

They also recognise that members of HMOCS in Hong Kong wish to know as

soon as possible the results of these deliberations. The issues are complicated and despite intensive work the process of drawing up proposals have taken longer than envisaged. The government are grateful for the sense of responsibility and patience shown by HMOCS officers.

2. HMG have now formulated a proposal for an outline of a scheme providing compensation and incentive payments to HMOCS officers and wish to consult the representatives of

the officers concerned about it. Schemes have always been tailored to the particular circumstances in the territory concerned and it has been the policy of HMG to try to ensure that such arrangements that are made when the Secretary of State relinquishes his responsibilities are not such as to

encourage members of HMOCS to leave the territory when it- still needs their services. In the case of Hong Kong, it is the policy of HMG that arrangements introduced in respect of

HMOCS should contribute to a smooth transition in 1997 and

that members of HMOCS should be encouraged to continue to serve in Hong Kong to assist in maintaining its economic prosperity and social stability.

3. The Joint Declaration and the Basic Law contain

provision for continuity of service with pay, conditions and pensions on terms no less favourable than before.

REGACH/1

CONFIDENTIAL

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