Confidential
have made clear
The Governor believes that the paper should start with an explanation of the amounts involved if the standard HMOCS
had been
package was applied to Hong Kong. This would mean a
traditional compensation scheme using full factors with a cap
at about £200,000 at 1992 prices and a sterling pension
safeguard rate set at about HK$12 to £1 sterling. Seen in
this context, the FCO proposal represents a significant compromise which takes into account the interests of UK taxpayers. At present, the paper implies that it is reasonable to take UK salary and pension relativities into
account and that only the Treasury proposal does this. This is far from the true position. The FCO proposal is already a
35% discount on standard HMOCS arrangements.
The Governor believes that all HMOCS officers in Hong Kong
have an expectation, based on past practice and precedent and
bearing in mind some have served in other HMOCS territories,
that arrangements would be introduced in Hong Kong similar to
those introduced elsewhere on transfer of sovereignty. This
expectation has done much to retain HMOCS officers over the
last 10 years.
The Governor recently had a meeting with HMOCS officers in the
Hong Kong Police. He is convinced that they would reject
firmly anything less than the FCO package. He has warned that
he would be forced to oppose publicly any offer to HMOCS falling short of this package. Mr Goodlad will have an opportunity to discuss these matters further with the Governor
in Hong Kong from 29 May to 1 June.
I am copying this letter to Roderick Lyne (No 10) and to
Peter Waneless (Chief Secretary's Office).
Private Secretary
Lt.owen.ADMIN
JEB
Confidential