21 January 1993

BY FAX

pa

DIFU

Foreign & Commonwealth

Office

London SW1A 2AH

Telephone: 071-

(2)

σ

Paul Fifoot Esq

HKA 233 RECE

RY

22 JAN 1993

Action Tuk

Dear Paul,

HMOCS

1. As I mentioned over the telephone, some progress has been made towards agreeing a package of benefits for HMOCS officers. The Treasury have agreed in principle to a pension safeguard and a compensation scheme. However, there remains a large gap between the Treasury and ourselves on the level of the safeguard, and on whether the compensation scheme should be along traditional lines i.e use of full factors.

2.

The Governor has concluded that the outstanding issues cannot be resolved at the official level and has written to the Prime Minister asking for a political decision. Once a decision is taken, we will need to issue a general statement with papers setting out details of the package, to be followed by a further round of consultations with the HMOCS Association in Hong Kong. You kindly agreed to draft the papers setting out eligibility for the pension safeguard and compensation along with details of how the schemes would operate. I suggest that for the purpose of preparing initial drafts we assume that the Governor's proposals are accepted.

3. Our discussions with the Treasury have focused more on principles than details, although some understandings have been reached on how the safeguard and compensation scheme would operate. I attach copies of the few papers which make reference to how these schemes would operate; if there are any other papers which I think may be of use to you I will send them by post.

4.

If there are any papers which you particularly need (e.g legislation governing previous compensation schemes) or points which you would like clarified, please give me a call.

ever,

Yours

Nigel

NC G Whitney

Hong Kong Department

paul.let.ADM

SLM

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