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9. Rather than just discussing the compensation element it

would be better for HMG to prepare revised proposals and put

them forward as a package including the right of early

retirement and sterling safeguard for pensions. There

should then be further consultations on these. They urged

HMG not to take a unilateral decision to impose a defective scheme. They put their trust in HMG to consider their points and to arrange further discussions. Such discussions should be structured as an open and frank exchange of views:

not just an exchange of prepared positions.

10. Timetable. They noted our apology for the delay in circulating our opening statement to individual officers and appreciated our willingness to consider comments received after the deadline. They noted our clarification that we

had not fixed the date for these consultations definitely

until we had considered the representations received. They

were grateful for our assurance that we had no wish to rush HMOCS members. They urged HMG to ask or instruct HKG to extend the deadline for officers opting for the new pensions scheme beyond 30 June. This was putting real pressure on HMOCS officers. There was a risk that by going to fast we

would end up with arrangements which were not fully thought through: it was better to get them right.

11. They were grateful for our clarification that we did not assert that HMOCS officers had any duty to continue to

serve in the SAR after 1 July 1997 and that this must be a matter of individual choice. Mr Birch initially took

exception to our oral statement expanding on this clarification and distinguishing between loyalty to the employer and allegiance to The Queen. He suggested that it dismissed the importance of the oath of allegiance sworn by RHKP officers. Mr Cartland later said that, having studied

the text we handed over of our statement, they still had a

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