CONFIDENTIAL
HKA 233/1
256
120015 MDHIAN 1101
CONFIDENTIAL
FM PEKING
TO IMMEDIATE F C O
TELNO 563
OF 220837Z APRIL 92
AND TO PRIORITY HONG KONG
INFO PRIORITY UKREP JLG HONG KONG
PERSONAL FOR RICKETTS, HKD
HONG KONG PERSONAL-EQR GOVERNOR
254+
YOUR TELNO 678: HMOCS: PENSIONS QUESTIONS
TOP COPY Q DIST?
la
1 zely
1. WE REGRET THAT THE LEGAL DETAIL IN TUR EXCEEDS OUR COLLECTIVE ABILITY TO COMMENT IN ALL BUT THE MOST GENERAL TERMS. WE SUSPECT THAT THE CHINESE MIGHT HAVE DIFFICULTY IN ASSESSING AN ARGUMENT PUT TO THEM IN SIMILAR TERMS.
2.
YOUR PARA 3: WE FIND IT DIFFICULT TO UNDERTAKE HOW A RIGHT TO RETIREMENT WITH IMMEDIATE PENSION MIGHT BE COMBINED WITH A COMPENSATION/INCENTIVE SCHEME DESIGNED TO ENCOURAGE HMOCS TO STAY ON. THE MAIN CHINESE WORRY IS LIKELY TO BE THE SOURCE OF THE FUNDING. IF IT WERE TO BE PROVIDED BY HMG, WE DO NOT SEE WHERE HKSARG LAW WOULD BE RELEVANT, PROVIDED ANY CIVIL SERVANT WISHING TO BENEFIT FROM SUCH A SCHEME HAD PROVIDED THE USUAL NOTICE OF RESIGNATION AND DID NOT DISQUALIFY HIMSELF FROM THE NORMAL PENSION ARRANGEMENTS. HIS CLAIM WOULD BE AGAINST HMG.
3.
PARA 4: WE DO NOT HAVE A DETAILED VIEW BUT IN GENERAL WE WOULD EXPECT THE CHINESE TO VIEW WITH GRAVE DOUBT ANY PROPOSAL THAT SELECTED PIECE OF UK LEGISLATION SHOULD CONTINUE IN FORCE IN HONG KONG AFTER 1997, HOWEVER OBVIOUS THE PRACTICAL ADVANTAGES OF SO DOING. BUT DAVID EDWARDS WILL BE MUCH BETTER PLACED TO GIVE A CONSIDERED VIEW.
4. THE 2ND SENTENCE OF PARA 4 WOULD SURELY ONLY BE RELEVANT IF IMPLEMENTATION OF THE RIGHT TO RETIRE WITH IMMEDIATE PENSION WAS TO BE FUNDED BY THE SARG. IN THAT CASE THE CHINESE WOULD CERTAINLY WISH TO BE CONSULTED. ALTHOUGH THE CHINESE MIGHT BE CONCERNED THAT A RIGHT TO RETIRE WITH IMMEDIATE PENSION WOULD REDUCE CONTINUITY IN THE CIVIL SERVICE, THEIR EMPHASIS, EXCEPT IN A SMALL NUMBER OF SPECIALISED AREAS, WOULD PROBABLY BE ON CONTINUITY OF NON-EXPATRIATE STAFF. BUT IF THE PROSPECT OF A
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