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FM HONG KONG
TO IMMEDIATE FCO
TELNO 984
OF 181245Z JUNE 93
PERSONAL FOR MORRIS (HKD)
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FROM PS/GH.
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170752
MDHIAN 5521
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YOUR TELNO 592: HMOCS: INFORMAL DISCUSSIONS WITH TREASURY.
THANK YOU FOR THE REPORT AND YOUR SUGGESTIONS ON THE POSSIBLE
WAY FORWARD. OUR COMMENTS FOLLOW SERIATIM.
1.
COMPENSATION SCHEME.
IT WOULD SIMPLY NOT BE POSSIBLE TO INCREASE THE NUMBER OF
HMOCS OFFICERS DIRECTED TO RETIRE UNDER THE HKG LIMITED COMPENSATION SCHEME OR THE SPECIAL BRANCH COMPENSATION SCHEME. THESE SCHEMES WERE AGREED AND FUNDED MANY YEARS AGO AND PROVIDE
FOR THE COMPULSORY RETIREMENT OF SOME 170 HMOCS OFFICERS (PLUS
SEVERAL HUNDRED LOCAL OFFICERS) IN CIRCUMSTANCES WHERE IT IS NOT IN
HMG'S OR THE HKG'S INTEREST THAT THEY REMAIN IN SERVICE POST 1997.
THE PARAMETERS ARE WELL ESTABLISHED AND IT WOULD BE VERY DIFFICULT TO EXPLAIN WHY SOME HMOCS OFFICERS, WHO DO NOT MEET THE SELECTION CRITERIA, SHOULD NOW BE INCLUDED. IN ADDITION THERE HAS ALREADY
BEEN SOME LEGCO CRITICISM OF THE LCS. IT WOULD NOT BE POSSIBLE TO
SECURE ADDITIONAL FUNDING AND ANY ATTEMPT TO DO SO WOULD ONLY
REOPEN WHAT HAS BECOME A SENSITIVE POLITICAL ISSUE.
3. WE COULD NOT AGREE TO ANY REDUCTION OF THE PROPOSED COMPENSATION CAP OF 120,000 POUNDS AT 1991-92 PRICES. WE BELIEVE THAT IT WOULD NOT BE POSSIBLE TO JUSTIFY SUCH A REDUCTION AND THAT
THE HMOCS ASSOCIATION WOULD OBJECT VERY STRONGLY.
4.
IT IS CORRECT THAT THE FULL COMPENSATION FACTORS USED IN OUR
LCS ARE SLIGHTLY HIGHER THAN THE TRADITIONAL FULL FACTORS USED IN
SOME OF THE MORE RECENT HMOCS COMPENSATION SCHEMES SUCH AS FIJI AND
THE WESTERN PACIFIC. HOWEVER OUR LCS FACTORS WERE WORKED OUT
HAVING REGARD TO HONG KONG'S CIRCUMSTANCES AND IT MAY BE DIFFICULT
TO JUSTIFY USING ANOTHER SCHEME AS A BASIS. THE ONLY DEFENSIBLE JUSTIFICATION FOR USING SLIGHTLY LOWER, BUT STILL TRADITIONAL, FACTORS FROM OTHER TERRITORIES MIGHT BE THAT RETIREMENT UNDER THE HMOCS COMPENSATION SCHEME IS VOLUNTARY AS IN OTHER TERRITORIES,
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