in the territory". The future circumstances of Hong Kong were not contemplated in the White Papers and the provisions of the Joint Declaration as regards continuity of employment (which the Chinese have reflected in the Basic Law) are highly significant in this respect. Another highly significant factor for a scheme which is to be funded by the United Kingdom is the very favourable salaries enjoyed by Hong Kong civil servants compared with those in the United Kingdom Civil Service; this is of a different order from the relationship with the benefits enjoyed in more traditional dependent territories. The present proposals, although they contain elements both of compensation and incentive, are not framed in an attempt to give effect to all the broad principles set out in the White Papers, but to take account of these and other factors.
B. Failure to separate inducement from compensation:
The proposals do not try to make such a separation.
C.
Failure to give effect to expectations of members of
HMOCS:
It must have been clear to members of HMOCS in Hong Kong that their own circumstances and benefits of employment are different from those in territories for which earlier schemes were framed and that account would have to be taken of this
in any scheme. An additional factor which has emerged is the decision of the Hong Kong Government not to adopt a general scheme, although its financial ability to do so is of an entirely different order from that of other territories, with the result that the present proposed scheme falls to be financed from the start by the United Kingdom.
D. Special provision for the judges:
We have been informed by the Hong Kong Government that there was no need to introduce a limited compensation scheme as only two posts were notionally involved and they were considered to be appointments rather than promotions.
ADDITIONAL POINTS WHICH MAY BE MADE ON THE PROPOSED SCHEME
6.
A.
There is no provision for re-assessment of the notional maximum sum for promotions after 30th June 1997. Reasons: (i) It seems reasonable for HMG to calculate on basis of rank reached in Crown service. (ii) Not all officers can benefit (top of grade etc).
(ii) We need to limit costs and to be able to plan now with as clear as possible an idea of the likely costs: promotions over 5 years can be predicted fairly easily but longer-term prediction is more difficult.
B.
There is no provision for any additional payment under the proposed Scheme for officers superseded after 30th June 1997. Reason: We do not yet know whether the SARG will offer compensation to any officers superseded after 30 June 1997.
PJZAYI