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« Ti Rechetts HKD
CONFIDENTIAL
Thank
you.
HONG KONG: HER MAJESTY'S (VERSEAS CIVIL SERVANTS
مه
/سه
Pin Bilateral
23/2
Details
Chris Patten has written to you twice.) Long-running argument with Treasury. Needs to be resolved. complex, but political issues clear.
Affects 700 expatriate civil servants and (crucially) police
officers. There are White Paper obligations and practice over
30 years for package offered to such officers when territory
in which they served ceased to be British.
- HMG have in all cases arranged two elements:
compensation
for loss of Crown protection and career prospects; safequard
for sterling value of officers' pensions.
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My proposals for Hong Kong officers are less generous than
previous schemes (given pay rates there, PES climate here).
They are the minimum acceptable to the Governor who feels very
strongly about this. Treasury trying to cheesepare to point
where we could face trouble in House (legislation is needed) proposals unner Rüble with
and possibly judicial review. Treasury proposals
HMOCS Assocint in.
1
On
My proposed compensation scheme will cost £12 million more than the Chief Secretary's proposal spread over six years. the pension safeguard, the theoretical liability looks big
(£250 million). But that would only apply if the HK dollar
became worthless. It would have to fall far below the present rates before HMG paid anything. who need the cured the spos
is which are ine joutunes.
We have a choice between putting an unsatisfactory scheme to the officers concerned (without Governor's endorsement) and then having to retreat from it, or deciding now on a
defensible proposal and sticking to it.
The Governor has enough on his plate without disgruntled
expatriate officers to deal with. Need to get this settled.
-
Have failed to agree with Treasury. A meeting?.........
BRIEFS.HMOCS.NJH
CONFIDENTIAL