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Date: 12 May 1993
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Sir Robin Butler Mr Lyne
SECRETARY OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS
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CHIEF SECRETARY, TREASURY
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HONG KONG: ARRANGEMENTS FOR MEMBERS OF
HER MAJESTY'S OVERSEAS CIVIL SERVICE
1.
The Prime Minister's private secretary asked Sir Robin
Butler to arrange for the Cabinet Office to undertake work with
officials of the departments concerned to clarify the issues
relevant to a decision on arrangements for compensation and pensions for Her Majesty's Overseas Civil Servants (HMOCS) in
Hong Kong and recommend an appropriate solution.
2. The attached paper briefly describes the background and sets out the respective positions of the Treasury and the Foreign
Office.
3.
In essence, both departments are agreed that compensation
for loss of prospects and the Foreign Secretary's protection and safeguarding of the value of pensions should be provided to HMOCS staff following the transfer of Hong Kong. There are relatively
minor differences over the design of the schemes; the main
dispute is over the level of payments. The Treasury note that remuneration in Hong Kong is roughly twice that in the UK and
argue that payments which reflect UK levels should be sufficient. The FCO believe that payments should follow precedent by taking
account of actual remuneration.
CONFIDENTIAL
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