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MDHIAN 6367;
HAVE EARNED THROUGH PREVIOUS SERVICE.
THE CAREER PROSPECTS OF HMOCS OFFICERS HAVE SUFFERED AS A RESULT OF THE TRANSFER OF SOVEREIGNTY IN THAT THEY WILL BE INELIGIBLE FOR POSTS RESERVED FOR CHINESE NATIONALS. SOME MAY NOT
WISH TO CONTINUE IN SUCH CIRCUMSTANCES AND SHOULD BE PERMITTED TO
RETIRE EARLY WITHOUT PENALTY.
THERE WOULD BE NO ADDITIONAL COSTS FOR HKG/SARG (PARAGRAPH 2 OF HONG KONG TELNO 1563).
b =
IN MY VIEW IT WOULD BE BEST NOT TO LAY TOO MUCH STRESS ON THE WHITE PAPER COMMITMENT AND THE PRACTICE IN OTHER DEPENDENT TERRITORIES ON INDEPENDENCE. THAT WOULD ONLY LEAD THE CHINESE TO RETORT THAT IT WAS UP TO HMG TO FULFILL ANY SPECIFIC COMMITMENTS GIVEN TO HMOCS OFFICERS.
5.
AS REGARDS PARAGRAPH 5 OF FIRST TUR, IT IS INDEED MY VIEW THAT IF WE PROCEEDED UNILATERALLY WITH AN EARLY RETIREMENT SCHEME FOR HMOCS OFFICERS, EITHER WITHOUT CONSULTING THE CHINESE OR AFTER CONSULTATIONS IN WHICH NO AGREEMENT WAS REACHED, THE CHINESE WOULD THREATEN TO STOP THE PAYMENT OF SUCH PENSIONS AND WOULD, IF FORCED INTO A CORNER, CARRY OUT THEIR THREAT.
PARTIAL FUNDING OF HONG KONG PUBLIC SERVICE PENSIONS
6. THE CHINESE PROPOSAL TO HAVE HK15 BILLION SET ASIDE FOR PENSIONS WAS PUT FORWARD WITH THE TRANSPARENT AIM OF GETTING THE HKG TO FUND THE PENSION OBLIGATIONS OF THE SAR AND THUS TO INCREASE
THE TOTAL AMOUNT OF RESERVES GUARANTEED TO THE SARG. THE TRANSFER OF ANNUAL SUMS TO A FUND CONTROLLED BY INDEPENDENT TRUSTEES (YOUR TELNO 947 TO HONG KONG) IS AN ENTIRELY DIFFERENT CONCEPT AND WOULD HAVE LITTLE IF ANY APPEAL TO CHINESE LEADERS. ON THE CONTRARY IT WOULD AROUSE INTENSE SUSPICION, INVOLVING AS IT DOES A FUND OUTSIDE THE CONTROL OF THE SARG. I DO NOT THINK THAT THE CHINESE WOULD REGARD A PROPOSAL IN THIS SENSE AS A CONSTRUCTIVE RESPONSE TO THEIR PROPOSAL. STILL LESS DO I THINK THAT IT WOULD CHANGE THE BASIS OF
OUR DISCUSSIONS WITH THE CHINESE ABOUT THE LEVEL OF HONG KONG
RESERVES POST-1997 LIABILITIES.
7. WHETHER OR NOT THE ESTABLISHMENT OF SUCH A FUND WOULD BE SEEN
AS A VOTE OF NO CONFIDENCE IS NOT THE POINT. THE CHINESE WOULD SEE
A PROPOSAL/PROPOSAL TO THAT EFFECT AS CASTING DOUBT ON THEIR INTENTION TO CARRY OUT OBLIGATIONS SET OUT CLEARLY IN THE JD AND
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