PAPER. THE ARGUMENTS IN PARAGRAPH 10 COULD BE BEEFED-UP. IN *ˆTICULAR 'IT MIGHT BE ADVISABLE TO STRESS THAT INSOFAR AS HMOCS OF ICERS IN THE ADMINISTRATIVE SERVICE ARE CONCERNED, THE JOINT DECLAR ON RESTRICTION ON SENIOR POSTS HAS A VERY REAL EFFECT ON CAREER ROSPECTS. ADDITIONALLY IT WOULD BE ADVISABLE TO MENTION HAT ALL HMOCS OFFICERS IN HONG KONG HAVE AN EXPECTATION, BASED ON PAST PRACTICE AND PRECEDENT AND BEARING IN MIND THAT SOME HAVE SERVED IN OTHER HMOCS TERRITORIES, THAT ARRANGEMENTS WOULD BE
NTRODUCED IN HONG KONG SIMILAR TO THOSE INTRODUCED ELSEWHERE ON *RANSFER OF SOVEREIGNTY. THIS EXPECTATION HAS DONE MUCH TO RETAIN
MOCS OFFICERS OVER THE LAST TEN YEARS.
COMPENSATION SCHEME.
). I DO NOT BELIEVE THAT IT WOULD BE LOGICAL OR DEFENSIBLE TO .GREE TO FULL COMPENSATION FACTORS FOR THOSE WHO LEAVE IN 1997 ITH HALF FACTORS FOR THOSE WHO STAY ON. THE FACT IS THAT ALL MOCS OFFICERS WILL LOSE THE PROTECTION OF THE SECRETARY OF STATE JPON THE TRANSFER OF SOVEREIGNTY IN 1997. SOME MAY HAVE A LIMITED CAREER AFTER 1997 BUT THERE CAN BE NO GUARANTEE, AND THEY WILL #AVE NO RECOURSE IF THIS IS NOT IN FACT THE CASE. SUCH AN
RTIFICIAL DISTRIBUTION MIGHT WELL ENCOURAGE MORE OFFICERS TO LEAVE IN 1997.
THE ARTIFICIALLY LOW CAP OF POUNDS 120,000 AT 1992 PRICES IS ALREADY A SIGNIFICANT DISCOUNT. THE HMOCS ASSOCIATION WILL ARGUE STRONGLY TO INCREASE THE CAP. IN OUR ASSESSMENT THEY WILL NOT .CCEPT ANYTHING LESS THAN FULL FACTORS AND WILL NOT AGREE TO A )ISTINCTION BEING DRAWN BETWEEN THOSE WHO GO AND THOSE WHO STAY.
STERLING SAFEGUARDS.
3. I AGREE THAT IT IS ESSENTIAL TO CONTINUE TO RESIST THE ́REASURY'S POSITION ON UK COMPARABILITY. HOWEVER TO ACCEPT A SAFEGUARD AT ANY RATE WORSE THAN 16 HONG KONG DOLLARS: ONE POUND STERLING WHICH HAS AT LEAST SOME HISTORICAL BASIS, WOULD BE TO ACKNOWLEDGE THE RELEVANCE OF HONG KONG AND UK SALARY AND PENSION RELATIVITIES.
#
USING EITHER THE CURRENT EXCHANGE RATE OR THE AVERAGE EXCHANGE RATE OVER THE LAST TWENTY YEARS WOULD PRODUCE A SAFEGUARD AT A RATE OF 12 HONG KONG DOLLARS: ONE POUND STERLING. THE HMOCS ASSOCIATION WILL PRESS FOR 13.76 HONG KONG DOLLARS: ONE POUND BEING THE 1991 AVERAGE. THEY WILL ARGUE VEHEMENTLY AGAINST A SAFEGUARD AT 16 HONG KONG DOLLARS: ONE POUND AND WOULD PROBABLY REFUSE TO CONSIDER ANYTHING LOWER. IN THESE CIRCUMSTANCES I CANNOT SUPPORT A MOVE TO 19 HONG KONG DOLLARS: ONE POUND. THE TREASURY MECHANISM FOR THE SAFEGUARD COULD POSSIBLY BE ACCEPTED, PROVIDED THAT SPOS IS REVISED ALONG THE LINES PROPOSED BY ODA.
SPOS.
10. THE SPOS REVISION IS REQUIRED URGENTLY TO ASSIST EXISTING
HONG KONG HMOCS PENSIONERS AS WELL AS SETTING HEARTS AT EASE OVER THE PACKAGE OF HMOCS ARRANGEMENTS. I BELIEVE THAT THIS PROPOSAL IS FULLY JUSTIFIED ON ITS MERITS AND THAT IN LOGIC IT MAY BE DIFFICULT FOR THE TREASURY TO ARGUE OTHERWISE. WITHOUT THIS SPOS REVISION A PENSION SAFEGUARD AT 16 HONG KONG DOLLARS 16:0NE POUND IS RELATIVELY WORTHLESS.
11. I CONTINUE TO BELIEVE THAT THE ABSOLUTE MINIMUM ON WHICH TO HOLD FURTHER CONSULTATIONS WITH THE HMOCS ASSOCIATION IS AS SET OUT IN THE FCO PROPOSAL. OFFICERS HAVE WAITED PATIENTLY SINCE 1984 FOR DETAILS OF PROPOSED HMOCS ARRANGEMENTS AND ANYTHING LESS COULD LEAD TO A SERIOUS OUTPOURING OF PENT UP FRUSTRATIONS. I