POLACI
and HMG, not the Hong Kong Government, will fund the scheme and will need to take account of employment conditions in the UK and the difference in salaries between Hong Kong and UK civil servants.
10. HMOCS members in Hong Kong will no longer have a career in the service of the Crown after 1997. The opportunity of continued employment in the HKSAR Government is not necessarily an attractive one given the likelihood of political interference by Peking. The payment of compensation by instalments, only one fifth of which would be payable in 1997 (the remaining four fifths would be payable in annual instalments of ten percent in later years) maybe seen as coercive rather than an inducement. HMG has no obligations in respect of encouraging HMOCS members to serve the SAR. The only strong argument for HMG's change of policy is that the HK will have to meet the whole bill for Hong Kong HMOCS members and not half as in earlier cases.
11. The HMOCS members in Hong Kong are now being consulted about HMG's proposals; there was a strong possibility of judicial review being brought by them if they were not consulted. But given that they expect a traditional compensation and retiring scheme, it is probable that, if disappointed with the scheme offered, they will seek judicial review of HMG's scheme when it is published administratively or made by Order in Council. Their likelihood of success is uncertain. There is also likely to be strong Parliamentary criticism from certain quarters.
12. Following consultations between the FCO/ODA and Hong Kong HMOCS, it became clear that the Hong Kong HMOCS were deeply discontened at what was on offer. The FCO now appreciate that HMG have no particular interest in locking HMOCS members into the service of the SARG (and indeed this cannot be justified politically) and that they need to placate HMOCS members or run the risk of losing many before 1997. They also now appreciate that in the changed circumstances post-Tiananmen, HMOCS officers can no longer be assured that the administration and police will be shielded from Peking's influence after 1997. Parliamentary criticism and proceedings for judicial review based on the reasonable expectations of HMOCS members is also feared. It is acknowledged that it is unlikely that EXCO as well as Legco would permit Hong Kong Government funds to be used for compensation or retirement in 1997 with immediate payment of pension for the benefit of this group of expatriate civil