SECRET
03 $75
28
MDHOAN
SCHEME AND WISH TO CONSULT REPRESENTATIVES OF THE OFFICERS CONCERNED.
5.
SUCH SCHEMES HAVE ALWAYS BEEN TAILORED TO THE PARTICULAR TERRITORY CONCERNED. IN THE SPECIAL CIRCUMSTANCES OF HONG KONG, WE ENVISAGE USING THE PRESENT HONG KONG GOVERNMENT LIMITED COMPENSATION SCHEME FOR SUPERCEDED OFFICERS AS THE BASIS FOR CALCULATING EACH OFFICER'S MAXIMUM POSSIBLE ENTITLEMENT.
6.
WE ENVISAGE COMPENSATION PAYMENTS BEING PHASED OVER A PERIOD OF YEARS, SO AS TO GIVE GREATER BENEFIT TO THOSE OFFICERS WHO CONTINUE THEIR SERVICE IN HONG KONG BEYOND 1997. WE WISH TO DISCUSS WITH HMOCS OFFICERS' REPRESENTATIVES WHETHER THE PERIOD OVER WHICH THE PHASING OF PAYMENTS WOULD TAKE PLACE SHOULD SPAN THE WHOLE OF THE OFFICER'S REMAINING CAREER IN THE HONG KONG PUBLIC SERVICE OR SOME LESSER PERIOD OF IT. WE CONSIDER THAT AN OFFICER SHOULD RECEIVE HIS MAXIMUM POSSIBLE ENTITLEMENT ONLY IF HE CONTINUES IN SERVICE UNTIL NORMAL RETIREMENT AGE OR, IF A LESSER PHASING PERIOD IS DECIDED ON, UNTIL THE END OF THAT PERIOD IF EARLIER.
7. WE CONSIDER THAT THE FIRST PAYMENT SHOULD BECOME DUE ON 30 JUNE 1998. IN ORDER THAT HMG SHOULD BE ABLE TO PLAN WITH A CLEAR IDEA OF THE COSTS INVOLVED, WE CONSIDER THAT IT WILL BE NECESSARY TO FIX AS THE BASE FOR CALCULATING PAYMENTS THE SALARY AS AT 30 JUNE 1991 OF THE GRADE IN WHICH THE OFFICER IS SERVING ON 30 JUNE 1997, CONVERTED INTO STERLING AT THE AVERAGE EXCHANGE RATE FOR 1991. HOWEVER THE DERIVED BASE VALUE COULD BE ADJUSTED ANNUALLY TO TAKE ACCOUNT OF THE MOVEMENT OF THE UK RETAIL PRICE INDEX.
8.
ANOTHER QUESTION FOR DISCUSSION IS THE PHASING ARRANGEMENTS, IE WHETHER THE FIRST AND SUBSEQUENT PAYMENTS SHOULD ACCRUE ANNUALLY IN EQUAL PROPORTIONS OR WHETHER THERE SHOULD BE SOME SORT OF LOADING'. FOR EXAMPLE, TO INCREASE THE BENEFIT
ΤΟ THOSE WHO ARE COMMITTED TO CONTINUE IN THE PUBLIC SERVICE, THE PROPORTION OF TOTAL ENTITLEMENT EARNED IN EACH YEAR COULD INCREASE TO REACH A PEAK IN THE FINAL YEAR.
9.
IT IS IMPORTANT THAT THERE SHOULD BE NO MISAPPREHENSION THAT THE ARRANGEMENTS TO BE MADE FOR HMOCS OFFICERS WILL IN ANYWAY AFFECT THE DUTY OF THOSE OFFICERS TO GIVE THEIR FULL LOYALTY TO THE HKG UP TO 30 JUNE 1997 AND TO THE GOVERNMENT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION THEREAFTER. WE THEREFORE
PAGE
SECRET
2