SECRET
XCX(93)54
8
The provisions relating to terms and conditions of service are largely covered, as far as Hong Kong is concerned, in the Joint Declaration with its guarantees of continued employment on terms no less favourable than before. (see footnote*) The outstanding issues are therefore compensation arrangements and the provision of Sterling pension safeguards.
9
The obligation to introduce such arrangements is a constitutional one which cannot be avoided. However as HMOCS is the responsibility of HMG it is clearly up to HMG to make and fund them.
Earlier Executive Council Advice
10
On 14 October 1986, having considered memorandum XCX(86)184, Members ADVISED and the Governor ORDERED that an approach should be made to the Secretary of State asking him if it was his intention that there should be a General Compensation Scheme for members of HMOCS in Hong Kong and advising him that if there was to be such a scheme, it should be entirely funded by HMG and that it should be announced as soon as possible. The Secretary of State should also be advised that responsibility for any guaranteed Sterling exchange rate for the pensions of members of HMOCS in Hong Kong should fall entirely upon the shoulders of HMG. Members noted that HMG had an historical obligation to members of HMOCS.
Present Position
11
Following an abortive earlier round of consultations with the Hong Kong HMOCS Association in 1992, and very detailed and difficult negotiations between the various UK departments involved, HMG has now agreed a proposed package of benefits for HMOCS officers. The package will comprise -
Footnote* :
It should be noted in this context that there is also a reference in the Joint Declaration to discontinuing favourable treatment for foreign nationals. However the HKG interpretation of this provision is that it relates to former appointment practices and not to condition of service.