·23-APR-1992 10:27
C.5.B. (2) 8685069
+852 524 6164
P.04
IN CONFIDENCE
2
in the circumstances of Hong Kong, if the payment of such compensation were to be made in any way conditional upon continuation of service under non-British sovereignty beyond 1997. Hong Kong is not going to be an independent country within the British Commonwealth, but rather an integral part of the Peoples Republic of China under full Chinese sovereignty. Whilst there can be no objection to HMG offering additional inducements to HMOCS officers agreeing to continue in service of their own free-will beyond 1997, such elements of incentive should not be offered at the expense of providing fair compensation to those reasonably exercising what should be the right to retire in 1997: Moreover, whether to remain in service beyond 1997 is matter officers should be free to decide without being driven by any element of co-ercion or penalty.
5.
A third fundamental point of principle is to establish a manifestly fair and equitable level of compensation. The limited compensation scheme currently applied in Hong Kong is generally recognised as providing acceptable levels of compensation for certain eventualities arising from, but occurring before, the constitutional change due to take place in 1997. As such it should provide a benchmark for a general compensation scheme.
scheme. The apparent recognition of this fact by HMG in the
the opening statement is to be welcomed, but regrettably the arrangements outlined for the general scheme appear to fall
fall far short of those in the limited scheme. In our view the compensation payable should be no less than that payable under the limited compensation scheme to officers required to retire for reasons of constitutional change and should be accompanied by the right to retire with earned pension. As under the limited compensation scheme there should also be provision for enhanced pension commutation for officers below the normal retirement age.
For many
officers what will
will occur in 1997 is a more devastating and threatening eventuality than being superseded for promotion before
before 1997. The fact that they are British subjects in a British service is the very basis of their being in Hong Kong. Many will feel compelled to leave when Britain does and
have every reason to expect, on the past record in other territories, that they will be
/afforded