CONFIDENTIAL

constitutional change. A Limited Compensation Scheme was

established in December 1987, which allowed for certain

pensionable officers to be retired:

if circumstances existed which made it unreasonable for the

officer to continue his service;

- in the interest of localisation;

- in the interest of the development of the public service.

4.

5.

However, one officer has recently challenged a decision

to retire him early in the interests of localisation. This has brought to light that the provisions of the Scheme do not

confer authority upon the Governor to require officers to

retire. While Colonial Regulation 55 provides the authority

for the Crown, through the Secretary of State, to dismiss a

Crown servant at will, the power of the Governor or his delegates to do so is not provided for in the Colonial Regulations, except on disciplinary grounds.

6.

To provide the Governor with the authority to require officers to retire on the grounds set out in paragraph 3 above requires the Secretary of State to authorise an addition to the Colonial Regulations. At Hong Kong's request we have

included in the addition to the Regulations a provision.

enabling the Governor to delegate the general authority to

retire officers.

prem.retire.ADM.BE/JRB

CONFIDENTIAL

THIS IS A COPY THE ORIGINAL HAS BEEN

FI

CLOSED UNDER

I EXEMPTION NO. 27(1.)

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