TNAG-0698-FCO40-848-Policy-and-commitment-on-pensions-for-public-servants-in-Hon-1979 — Page 12

there will papers

Fit

or

CODE 18-77

Received 5/11

CONFIDENTIAL

Reference..

SA/P 26853

cc Mr J W Willby

SA/P 24809

X

Mr N A Ling

Hong Kong & General Department

TRANSFERS TO THE HK P&P ESTABLISHMENT

1.

Thank you for your minute of 18 October about the request by the

Government of Hong Kong for your presumably this means the Secretary of State's approval to transfer Messrs J Farquhar and R G Horsnell,

Maintenance Surveyors, PWD to the P & P establishment.

-

2. I must say that I can well understand HKG's point of view and why

they have made their request. But I must also tell you that I would

be reluctant to recommend the grant of the Secretary of State's approval.

As I understand it many years ago HKG were advised to cease p & p appointments

of expatriates other than in the Administrative and Police fields or on

transfer within HMOCS. This restriction was done so that, inter alia,

the future pool of people, who would be within HMC CS and persons for whom HMG had a special obligation mainly for career and pension/compensation

purposes would be small. However I believe over recent years the

restriction has been less rigidly applied and the number of people in HMOCS

and in the compensation field are much bigger than we would like.

3.

There is a discussion on your papers about the HK/HMOCS/Pensions problems

and you may like to look at them. Mr Stewart before he left your Department was to have discreet discussions with the Governor (and his advisers) on

these matters but I am not sure whether there has been any progress on them.

The problem with this current request is that if it is accepted, without reservation, HKG and the contract expatriate staff generally might feel that it could be done again and again: but if it is not approved then

reasons for dissent must be given. Given that HMOCS is really moribund outside Hong Kong and inside its only real relevance is that membership bring coverage under Colonial No 306 and Cmnd 1193 (ie. compensation and POA benefits) that there is a problem over Hong Kong's large and increasing pensions bill, and that Hong Kong is nevertheless "unique", you will no doubt want to consider whether it is time to take the bull by the horns and find a general

solution or whether to let these go but have the matter looked into urgently.

I am afraid the ball is really in your court.

I am copying this to Mr Willby, the Head of Pensions Dept here.

JL West

Personnel Services Executive

3 November 1978

CONFIDENTI AL