IN CONFIDENCE

4

6.

It is intended to fix as the base for

calculating payments the salary as at 1 January 1992 of the

rank point in which the officer is serving on 30 June 1997

converted into sterling at the average exchange rate for the derived base value could be adjusted

account of the movement of the UK retail

However

1991.

annually to take price index.

7.

It is

misapprehension

officers

important that there should be no

that the arrangements to be made for HMOCS will in anyway affect the duty of those officers to give

give their full loyalty to the HKG up to 30 June 1997

and to the government of the Hong Kong SAR thereafter.

8.

wide

We are ensuring that this statement is given a

distribution to those officers who have an interest in

it. We should be grateful to receive any written comments

on the proposal outlined above by 24 April. We then

envisage that a small team of officials should visit

Hong Kong in the week beginning 4 May in order to discuss points arising with representatives of the Association of

members of HMOCS in Hong Kong. Thereafter we hope to

announce decisions

details of the scheme early in

on the

June.

IN CONFIDENCE

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