SECRET
FM FCO
TO PRIORITY PEKING
TELNO 425
OF 221142Z MAY 92
SECRET
HKA 233/1
AND TO PRIORITY HONG KONG, UKREP JLG HONG KONG
349
034547
MDLOAN 6362
SOPY
Q DIST?
PERSONAL FOR AMBASSADOR
HONG KONG PERSONAL FOR GOVERNOR
UKREP JLG PERSONAL FOR MR GALSWORTHY
FROM HKD
334
YOUR TELNO 695: HONG KONG HMOCS: EARLY RETIREMENT
1.
THANK YOU FOR THIS HELPFUL ADVICE.
2. IN THE LIGHT OF THIS, AND SUBJECT TO ANY FURTHER COMMENTS YOU AND OTHER ADDRESSEES MAY WISH TO MAKE, WE ARE INCLINED TO THINK THAT ALTHOUGH IT WOULD BE RIGHT IN DUE COURSE TO DISCUSS WITH THE CHINESE THE FUTURE OF EXPATRIATE PUBLIC SERVANTS, IT WOULD BE BETTER, AT LEAST INITIALLY, NOT TO INCLUDE THE QUESTION OF EARLY RETIREMENT BEFORE 1 JULY 1997 WITH EARLY PAYMENT OF PENSION. EVEN IF WE GET OVER THE INITIAL HURDLE OF SUSPICION, AS YOU PUT IT, THE SMALL PRINT COULD CAUSE GREAT DIFFICULTIES. THE THEORETICAL MAXIMUM EXTRA COST OF PAYING EARLY PENSIONS, IF ALL HMOCS OFFICERS RETIRED EARLY, COULD LOOK SUBSTANTIAL (ALTHOUGH IN PRACTICE THE MARGINAL EXTRA COST ON THE HONG KONG PENSIONS BILL WOULD BE RELATIVELY SMALL). YOUR TELNO 563 MENTIONED THE CHINESE TEMPTATION TO EXPLOIT POTENTIAL DIFFERENCES BETWEEN LOCAL AND EXPATRIATE OFFICERS. PARTICULARLY WHILE HKG ARE UNWILLING TO RESPOND TO CHINESE PROPOSALS FOR A
SET ASIDE FUND TO REASSURE THE CIVIL SERVICE GENERALLY ABOUT THE SECURITY OF THEIR PENSIONS, WE CANNOT EXPECT A HELPFUL CHINESE REACTION. AN UNHELPFUL ONE MIGHT EXPOSE US TO CONSIDERABLE DANGER REGARDING THE JD PENSIONS PROVISIONS.
3.
IF MINISTERS DECIDE TO HONOUR THIS HMOCS COMMITMENT, WE SHOULD THEREFORE NOT THINK IN TERMS OF A 'BRITISH PLAN' TO GRANT
THE RIGHT TO RETIRE EARLY, BUT INSTEAD TRY TO ACHIEVE OUR OBJECTIVES BY DISCREET AD HOC OPERATION OF EXISTING POWERS.
ONE OPTION MIGHT BE THAT HMOCS OFFICERS WHO WISH TO HAVE THIS RIGHT COULD BE QUIETLY TOLD: