TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 303

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payments for

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C. LIABILITY FOR PENSIONS AND COMPENSATION FOR PUBLIC OFFICERS

AND THEIR DEPENDANTS

PRESENT POSITION

1. THE HONG KONG GOVERNMENT IS UNDER A LIABILITY TO PAY

PENSIONS AND OTHER RETIREMENT GRANTED TO MEMBERS OF THE HONG

KONG PUBLIC SERVICE AND TO THEIR WIDOWS AND OTHER DEPENDANTS

UNDER HONG KONG PENSIONS LEGISLATION. IT IS RESPONSIBLE FOR

PAYING PENSIONS, ETC. ALREADY GRANTED TO OR IN RESPECT OF

RETIRED OFFICERS AND AS PENSIONS ETC ARE GRANTED TO OR IN

RESPECT OF SERVING OFFICERS OR THEIR RETIREMENT, IT WILL BE

RESPONSIBLE FOR PAYING THESE ALSO. HMG HAVE NO LEGAL LIABILITY

AT PRESENT FOR PAYING THESE PENSIONS.

((PENSIONS ETC ARE CALCULATED AND PAID IN HK DOLLARS EXCEPT THAT

((SINCE 19 )) PENSIONS FOR HMOCS OFFICERS ARE CONVERTED INTO

STERLING AT THE RATE OF EXCHANGE PREVAILING AT THE RELEVANT DATE

OF RETIREMENT AND PAID ACCORDINGLY)).

MAINTENANCE OF EXISTING ARRANGEMENTS

2. SO LONG AS THE UK RETAINS ITS PRESENT RESPONSIBILITY FOR

THE GOVERNMENT OF THE COLONY, HMG WILL BE ABLE TO ENSURE THAT

PENSIONS ETC GRANTED TO RETIRED HONG KONG PUBLIC OFFICERS AND

THEIR WIDOWS AND DEPENDANTS WILL CONTINUE TO BE PAID FROM HONG

KONG GOVERNMENT FUNDS.

CONSTITUTIONAL CHANGE

3. IN THE EVENT OF CONSTITUTIONAL CHANGES UNDER WHICH THE

SECRETARY OF STATE IS NO LONGER RESPONSIBLE FOR THE PUBLIC SERVICE

OF HONG KONG, HMG WILL NO DOUBT WISH THE NEW CONSTITUTIONAL

ARRANGEMENTS TO INCLUDE PROVISIONS DESIGNED TO ENSURE THAT

PAYMENTS OF HONG KONG PENSIONS WILL REMAIN THE LIABILITY OF THE

HONG KONG GOVERNMENT AND WILL CONTINUE TO BE PAID FROM HONG KONG

FUNDS.

COMPENSATION SCHEME

4. AT THE STAGE WHEN THE SECRETARY OF STATE RELINQUISHES HIS

PRESENT RESPONSIBILITY FOR THE HONG KONG PUBLIC SERVICE, IT WILL

BE NECESSARY TO INTRODUCE A COMPENSATION SCHEME FOR SERVING

MEMBERS OF THE HONG KONG PUBLIC SERVICE WHO ARE MEMBERS OF

HMOCS. THE SCHEME MAY ALSO NEED TO COVER SOME PERMANENT AND PENSIONABLE OFFICERS WHO ARE NOT MEMBERS OF HMOCS BUT WHO ARE

EITHER EXPATRIATES OR ARE LOCAL OFFICERS IN SENIOR POSTS

WHOSE CAREER PROSPECTS HAVE BEEN ADVERSELY AFFECTED BY

CONSTITUTIONAL CHANGE.

LIABILITY TO PAY COMPENSATION, ETC.

5. PAYMENT OF COMPENSATION AND OTHER BENEFITS UNDER THE

COMPENSATION SCHEME SHOULD, IF POSSIBLE, ALSO BECOME THE

LIABILITY OF THE HONG KONG GOVERNMENT, IN WHICH EVENT THEY

TOO WILL BE PAYABLE FROM HONG KONG GOVERNMENT FUNDS.

PRESSURE ON HMG

6. IN RECENT YEARS, HOWEVER, HMG HAVE ASSUMED THE LIABILITY

TO PAY THE PENSIONS ETC OF HMOCS OFFICERS AND THEIR DEPENDENTS

THAT PREVIOUSLY RESTED WITH THE GOVERNMENTS OF MANY DEPENDENCIES

OR FORMER DEPENDENCIES. NO SUCH ARRANGEMENTS HAVE SO FAR BEEN

ENVISAGED WITH THE GOVERNMENT OF THE COLONY OF HONG KONG, BUT

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