Chief Secretary
CONFIDENTIAL
FROM: Secretary of State
DATE: 29 April 1992
I ove fraj
HONG KONG: HMOCS PENSIONS
1.
David Mellor and I corresponded regently about how we should fulfil our obligations towards/the several hundred
British officials and police officers in Hong Kong who at the change of sovereignty on 1 July 1997 will cease to be members of Her Majesty's Overseas/Civil Service (HMOCs).
This matter has been under discussion since the negotiation
of the Joint Declaration in 1984, and the Governor has
recently advised me that unless we can soon announce satisfactory arrangements, in line with those made in the other dependent territories, we risk losing many of these
officers well before 1997, jeopardising our ability to govern Hong Kong effectively up to 1997 and damaging the prospects for a smooth transition. I am sorry to trouble you with this problem so early in the life of the new government, but Chris Patten and I both believe that it is essential that we should resolve it before he takes up his
position as Governor and, if possible, before 30 June, the
date by when the officers concerned have to opt for pensionable terms or between new and old pension schemes.
2.
Last August we proposed a package solution, whereby HMG
would fund a compensation/incentive scheme, to compensate the officers for the loss of my protection and to a certain extent of career prospects, and a safeguard for the sterling value of their Hong Kong pension. We also proposed that we
ARRAFI/1
SLM
CONFIDENTIAL