SECRET
FM HONG KONG
TO PRIORITY FCO
TELNO 1563
SECRET
cc!d Mr Broadbent, Eco. Adv 377
Q~12/6
Actin sen
HKA 233/1
1 0 JUN 1997
CN
C
tule....
101217
MDLIAN 1483
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to put down a
re para 6.
TOP CUPY
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OF 091037Z JUNE 92
INFO PRIORITY PEKING, UKREP JLG HONG KONG
* DIST?
PERSONAL FOR RICKETTS, HKD FROM DEPUTY TO THE GOVERNOR
PEKING: PERSONAL FOR AMBASSADOR
UKREP JLG: PERSONAL FOR GALSWORTHY
367
YRTELNO 924: HMOCS
device
M 10/%
1. THANK YOU FOR UPDATING US ON MINISTERIAL THINKING. WE WELCOME
THE PROGRESS WHICH IS BEING MADE. AS WE SEE IT, A STERLING SAFEGUARD AT A DEFENSIBLE LEVEL AND A REVISED COMPENSATION SCHEME
MORE IN ACCORDANCE WITH NORMAL PRACTICE AND USING TRADITIONAL ACTUARIAL FACTORS BUT WITH A CAP OF ABOUT 120,000 POUNDS, ARE LIKELY TO BE ACCEPTABLE AND MY JUDGEMENT IS THAT THESE TWO WOULD
GO A LONG WAY TOWARDS MEETING THE CONCERNS OF THE HMOCS
ASSOCIATION. TO WHAT EXTENT THE GENERAL RIGHT TO RETIRE WOULD
REMAIN A REAL BONE OF CONTENTION REMAINS TO BE SEEN.
2. IN THIS CONTEXT IT IS WORTH NOTING THAT ACCOMMODATING A
GENERAL RIGHT TO RETIREMENT UNDER EXISTING HONG KONG PENSIONS LEGISLATION AS SET OUT IN OUT TELNO 425 AND PARAGRAPH 7 (A) OF
YOUR TELNO 455 TO PEKING WILL NOT RESULT IN ANY ADDITIONAL COSTS
FOR THE HKG/SARG. BASED ON 74 AS THE ACTUARIAL LIFE EXPECTANCY,
PAYMENT OF A SMALLER PENSION EARLIER AND FOR A LONGER PERIOD OF
TIME IS NOT MORE COSTLY THAN PAYMENT OF A HIGHER PENSION FROM AGE
55. INDEED IF THE POSSIBILITY OF PROMOTION IN THE LONGER TERM IS INCLUDED, THEN THE COST OF RETIREMENT ON PENSION AT AGE 55 IN A
HIGHER RANK IS IN FACT LIKELY TO BE MUCH MORE COSTLY.
3. NEVERTHELESS, WE CONTINUE TO HAVE SERIOUS DIFFICULTIES WITH THE GENERAL PROPOSITION THAT HMOCS OFFICER SHOULD BE GIVEN THE
RIGHT TO RETIRE. WE HAVE TRADITIONALLY OPERATED THE CIVIL SERVICE
AS A UNIFIED SERVICE AND IN RECENT YEARS HAVE DELIBERATELY SOUGHT
TO REMOVE DIFFERENCES IN TREATMENT BETWEEN LOCAL AND OVERSEAS
OFFICERS. GIVING HMOCS OFFICERS THE RIGHT TO RETIRE WILL BE
DIVISIVE AT A TIME WHEN UNITY IS ALL THE MORE DESIRABLE FROM THE OPERATIONAL POINT OF VIEW. OUR ASSESSMENT IS THAT, WHILE SOME LOCAL OFFICERS WOULD BENEFIT FROM ACCELERATED PROMOTION AS Á
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