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NOW ELABORATE. THESE DID NOT INCLUDE A RIGHT TO RETIRE EARLY WITH IMMEDIATE PENSION: PENSIONS WERE REGULATED BY THE LAWS OF HONG KONG. THESE WERE NOT PROPOSALS FOR A TRADITIONAL FORM OF COMPENSATION AND RETIRING BENEFITS SCHEME AS PROVIDED BY THE GOVERNMENT OF A TERRITORY ABOUT TO ATTAIN INDEPENDENCE: BUT FOR A SPECIAL SCHEME, FUNDED BY HMG IN THE UK AND GEARED TO HONG KONG'S UNIQUE CIRCUMSTANCES, NOTABLY THE PROVISIONS OF THE JOINT DECLARATION (JD). WE SAID THAT WE WANTED TO HEAR THE ASSOCIATION'S VIEWS ON ALL THE POINTS OF CONCERN TO THEM: BUT WE SOUGHT TO FOCUS DISCUSSIONS ON THE DETAILS OF OUR PROPOSALS, PARTICULARLY HOW PAYMENTS SHOULD BE PHASED. WE SAID THAT ONE OF THE OPTIONS WE HAD BEEN CONSIDERING WOULD BE FOR 10 PERCENT OF THE NOTIONAL MAXIMUM TO BE PAYABLE TO ALL IN 1997 AND FOR ADDITIONAL ANNUAL PAYMENTS OF 10 PERCENT TO THOSE WHO STAYED ON UP TO 2006.

4. THE ASSOCIATION TEAM SAID THAT THE HMOCS WHITE PAPERS AND PAST PRACTICE IN ALL OTHER DEPENDENT TERRITORIES (DTS) WERE QUITE CLEAR: THERE WAS NO JUSTIFICATION FOR NOT APPLYING THE SAME PRINCIPLES TO HMOCS OFFICERS IN HONG KONG. THEIR SITUATION WOULD IF ANYTHING BE LESS FAVOURABLE THAN ELSEWHERE:

(A) HONG KONG WOULD PASS UNDER THE SOVEREIGNTY OF A COMMUNIST REGIME, OUTSIDE THE COMMONWEALTH, WITH A DEPLORABLE RECORD OF REPRESSION AND ABUSE OF HUMAN RIGHTS, OF DISHONOURING ITS OBLIGATIONS AND OF CORRUPTION:

(B) THERE HAD BEEN NO CONSULTATION WITH HMOCS OFFICERS BEFORE HMG NEGOTIATED THE CHANGE OF SOVEREIGNTY: AND

(C) THE PROSPECTS OF ALTERNATIVE EMPLOYMENT WERE VERY THIN, GIVEN EG UK UNEMPLOYMENT LEVELS AND THE AGE AND LONG ABSENCE FROM THE UK OF MANY HMOCS OFFICERS.

THEY HAD ALWAYS EXPECTED EITHER A LIFE-TIME CAREER IN CROWN SERVICE OR FULL COMPENSATION ETC ARRANGEMENTS AS MADE IN OTHER DTS. THOSE OFFICERS WHO FELT UNABLE TO CONTINUE TO SERVE IN THE SAR MUST BE ABLE TO LEAVE ON REASONABLE TERMS. OUR PROPOSALS WOULD IN EFFECT FORCE MANY TO STAY, WHATEVER THE CLAIMS OF THEIR CONSCIENCE OR OF THEIR LOYALTY/ALLEGIANCE TO THE CROWN, AS ONLY BY STAYING COULD THEY HOPE TO SUPPORT THEIR FAMILIES. OUR PROPOSALS WERE NOT A COMPENSATION SCHEME BUT A PENALTY SCHEME.

5. THE ASSOCIATION TEAM SAID THAT THEY DID NOT THINK THAT THE JD WAS THE ISSUE, BUT, SINCE WE HAD RAISED IT, THEY WOULD OBSERVE THAT

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