SECRET
012611
MDLOA 5721
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SECRETARY, IN 1988).
WE THEN ADVISED THAT IT COULD NOT BE
APPLIED TO THEM BECAUSE OF PROBABLE CHINESE AND CERTAIN HONG KONG OPPOSITION: IT WOULD LEAD TO AN EXODUS: THE CHINESE WOULD
SEE IT AS A DELIBERATE INCENTIVE TO SUCH AN EXODUS AND AS INCONSISTENT WITH OUR COMMITMENT TO A SMOOTH TRANSITION: IT COULD UNDERMINE CONFIDENCE IN HONG KONG'S CONTINUED STABILITY
AFTER 1997.
5. MINISTERS NOW NEED TO CONSIDER WHETHER, IN THE LIGHT OF DEVELOPMENTS SINCE 1988, THE BALANCE STRUCK BETWEEN (A) FOREIGN POLICY AND HONG KONG CONSIDERATIONS AND (B) THE SECRETARY OF STATE'S DUTY TO PROTECT THE INTEREST OF THE OFFICERS CONCERNED
IS STILL BOTH RIGHT AND POLITICALLY DEFENSIBLE. WE HAVE DISCUSSED THIS WITH THE GOVERNOR. HIS VIEW WAS THAT IT WOULD
NOT BE IN HONG KONG'S OVERALL INTEREST TO GRANT THE RIGHT TO RETIRE EARLY WITH IMMEDIATE PENSION: THIS WILL BE FULLY REFLECTED IN OUR SUBMISSION. WE SHALL BE CLEARING WITH PS/GH LANGUAGE RECORDING THE GOVERNOR'S VIEW. BUT WE ALSO THOUGHT THAT IT WOULD BE USEFUL TO SEEK YOUR VIEWS, AND THOSE OF MR GALSWORTHY, FROM YOUR VANTAGE POINTS ON THE LIKELY CHINESE ATTITUDE SHOULD WE DECIDE EVENTUALLY TO MOVE IN THIS DIRECTION.
POSSIBILITIES
IN THEORY THERE ARE SEVERAL WAYS WITHOUT NEW LEGISLATION IN WHICH SOME OR ALL HMOCS OFFICERS COULD BE ALLOWED THIS RIGHT (WHICH OF COURSE THEY MIGHT NOT CHOOSE TO EXERCISE) BEFORE 1 JULY 1997:
(A) UNDER THE NEW PENSIONS ORDINANCE (CAP 99) THE SECRETARY FOR THE CIVIL SERVICE COULD APPROVE THE RETIREMENT WITH DEFERRED PENSION (IE PAYABLE FROM NORMAL RETIREMENT AGE) OF ANY HMOCS OFFICER WITH TEN YEARS' SERVICE WHO HAS OPTED FOR THE NEW PENSION SCHEME, AND THE GOVERNOR COULD THEN APPROVE NON-DEFERRAL IE IMMEDIATE PAYMENT.
(B) UNDER THE OLD PENSIONS ORDINANCE (CAP 89) THE GOVERNOR COULD APPROVE THE EARLY RETIREMENT WITH IMMEDIATE PAYMENT OF PENSION OF ANY HMOCS OFFICER AGED 45 OR MORE WITH TEN YEARS' QUALIFYING SERVICE WHO HAS REMAINED ON THE OLD PENSIONS SCHEME.
(C) WE COULD INCLUDE A PROVISION FOR EARLY RETIREMENT IN OUR BENEFITS (COMPENSATION/INCENTIVE) SCHEME, AND THE GOVERNOR- IN-COUNCIL COULD APPROVE THIS AS A COMPENSATION SCHEME UNDER THE TWO PENSIONS ORDINANCES (WHICH ALLOW FOR EARLY RETIREMENT IN
ACCORDANCE WITH AN APPROVED COMPENSATION SCHEME).
(D) HKG COULD OPERATE THE PROVISIONS OF THE LIMITED COMPENSATION SCHEME MORE LIBERALLY THAN HITHERTO ENVISAGED. THE SCHEME