SECRET
XCX(93)35
28
However, if we were to allow any overseas officers to change to local pensionable terms now, we would be committing the future SARG to employing these officers. The Chinese could justifiably attack us for doing so without seeking their prior agreement. They might even threaten not to recognise those appointments made by the British/Hong Kong Government and throw doubt on their post 1997 employment and the security of their pensions.
29
We therefore propose that all transfers will be to local agreement terms. But transferees in grades which do not generally offer local agreement terms now will be told that they cannot expect more than one contract on local terms. Our intention is that any further employment will be on a pensionable basis, subject to our reaching an agreement with the Chinese on this in due course. As the offer of local agreement terms to officers in grades which do not at present offer such terms generally to local officers is only a transitional measure, we would not give serving local pensionable officers the option to transfer to local agreement terms.
30
In any eventual transfer to local pensionable terms, we intend to include a requirement of proficiency in the language of the vast majority of the population viz. the Chinese language. This is because, with the transfer of sovereignty in 1997, the use of the Chinese language is likely to become increasingly important in the post 1997 period and the efficiency and effectiveness of an officer may be hampered if he cannot communicate in that language. This longer term requirement will be subject to consultation with the Chinese.
31
We have also considered whether a Chinese language requirement should apply to those transferring to local agreement terms. However legal advice is that, in view of the provision in the BOR [Article 1(1)] which prohibits distinction on the ground of language, a Chinese language requirement could only be justified if it is necessary for the job. As the overseas officers have been employed without any Chinese language requirements, it would be difficult to justify stipulating such a requirement now. On balance it seems that a language requirement should be stipulated with respect to those transferring to local contracts only where this can be justified strictly on functional grounds within the contract period.
Executive Council