CONFIDENTIAL

HMOCS RIGHT TO RETIREMENT AT CHANGE OF SOVEREIGNTY

ARGUMENTS FOR GIVING SUCH A RIGHT

ANNEX A

1.

The White Paper of 1960 states:

"there are certain broad principles which in the opinion of Her Majesty's Government should be applied in any future compensation scheme in order to reflect the interests of

both the officers and the Government concerned.

principles are the following:

Among those

(a) When the Secretary of State's control passes to an

executive Public Service Commission, overseas

officers should be entitled to retire with

compensation

• •

2. However the position looked in 1984, subsequent developments, notably Tiananmen and the evidence of China's determination to place strict limits on the degree of autonomy which Hong Kong will enjoy after 1997 mean that there is scant justification for denying Hong Kong HMOCS officers this specific general right.

3.

There could be some parliamentary sympathy for HMOCS officers who do not wish to transfer their loyalty to an SAR under Communist sovereignty.

4. The costs could be reduced by offering the officers

concerned abated pensions until their Hong Kong pensions

became payable.

5. In practice few would opt to leave early unless there were a serious deterioration in the situation: they see this

mainly as a question of principle.

NC1ACC/9

CONFIDENTIAL

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