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Reference

HKA 233/1

CONFIDENTIAL

From: D S FISH

(Ext 3444)

Date: 13 May 1992

Mr Kerby

VISIT TO HONG KONG AS PART OF UK TEAM TO DISCUSS COMPENSATION ARRANGEMENTS WITH THE HMOCS STAFF ASSOCIATION HONG KONG: WHERE WE GO FROM HERE

1. You have seen the telegraphic report on our meetings.

2. The discussions took place against the background of our initial outline of the proposed scheme, and a subsequent exchange of letters between Nigel Cox and Michael Cartland, HMOCS Association Chairman. Those exchanges made it clear that there was a massive gulf between the positions of the two sides, and our visit did nothing to bridge the gap.

3. We held several meetings with Messrs Cartland and Birch (a police representative); both sides stated their position repeatedly but it would be stretching the meaning of the word to suggest that there was any real negotiation. We had no authority to move from the position outlined in our opening statement, other than a very limited amount of flexibility in

in the phasing of

payments.

4.

The Association for their part had been mandated to discuss the detail of a Compensation Scheme, only if it contained the right to retire with immediate payment of pension and compensation. They made it clear that they did not regard our scheme as a "fair basis for discussion". It is certain that it will be very difficult to engage them in meaningful discussions in the absence of a right to retire. Feelings on this run very high indeed; we had the opportunity to meet a number of HMOCS officers and they left us in no doubt that if HMG did not produce a compensation proposal along the lines of those introduced elsewhere, they would pursue their case vigorously using all the means at their disposal.

could have a

5.

A number of officers would still like to continue to 1997 and beyond, but they regard the insurance of the right to retire with pension and compensation as vital if they are to enjoy realistic options at the change of sovereignty. For people in mid-career, the absence of an insurance policy is likely to prompt them to seek alternative pastures immediately and this significant effect on the police force up to 1997. Many of those who are unable to secure alternative employment would probably have little choice but to stick it out for as long as possible, but a number of officers made the point that continued employment under duress would be undesirable in both personal and efficiency terms.

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