HKK
02717
- 3 NOV 1986
FILT
A
CONFIDENTIAL
Private Secretary
KY
niaken
FROM: C O HUM, HKD
DATE: 9 October 1986
cc: PS/Mr Renton
Dr Wilson
131
SECRETARY OF STATE'S VISIT TO HONG KONG: GENERAL COMPENSATION SCHEME
1. I understand that the Governor may raise with the Secretary of
State, while he is in
Hong Kong, the question of a general
compensation scheme for members of Her Majesty's Overseas Civil Service (HMOCS) in Hong Kong. This would almost certainly be when the Secretary of State passes through Hong Kong on his return from
China.
2. We have not recently consulted the Secretary of State on this issue. I therefore attach the latest papers, which describe where matters stand. In March 1985 OD (K) agreed that "we should aim for
arrangements whereby HMOCS officers in Hong Kong are eligible for compensation from local revenue". It was felt that no decision on the issue would need to be taken until a good deal nearer to 1997.
3.
the
The Governor now believes that a decision of principle on the
introduction of a scheme must be taken now; and that if HMG feels
there must be such a scheme then HMG should pay. He argues that it would be highly divisive in any event if a small proportion of the Hong Kong civil service (ie the expatriates) was eligible for
compensation at the time of the transfer of
of sovereignty: all
more so if this was from local funds. The Chinese, who are very
concerned about stability and continuity in the Hong Kong Government service, would be displeased at what they would see as arrangements to induce expatriates to leave Government service: again doubly so if this was at the expense of the future Hong Kong SAR.
CONFIDENTIAL
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