TNAG-1548-FCO40-2112-Future-of-the-Hong-Kong-public-service-1986 — Page 134

GRS 350

SECRET

FM HONG KONG

TO PRIORITY FCO

TELNO 236

OF 22065OZ JANUARY 86

INFO PRIORITY PEKIJING

SECRET

MY TELNO 2663 OF 28 NOVEMBER 1985 AND YOUR TELNO 1888 OF 29 NOVEMBER 1985 : HONG KONG PUBLIC SERVICE : SENIOR APPOINTMENTS

EXECUTIVE COUNCIL HAS AGREED IN PRINCIPLE THAT OVERSEAS MEMBERS OF THE ADMINISTRATIVE SERVICE SHOULD NOT IN GENERAL SERVE BEYOND THE AGE OF 57, EXCEPT WHERE WE ARE ALREADY CONTRACTUALLY COMMITTED OR WHERE THERE ARE EXCEPTIONAL CIRCUMSTANCES REQUIRING THE RETENTION OF A PARTICULAR OFFICER.

2. THE PRACTICAL ARRANGEMENTS TO ACCOMPLISH THIS WILL BE AS FOLLOWS. OVERSEAS ADMINISTRATIVE OFFICERS REACHING THE NORMAL RETIREMENT AGE OF 55 WILL BE GIVEN, SUBJECT TO THEIR BEING EFFICIENT AND REQUIRED, A TWO YEAR EXTENSION ON CONTRACT TO THE AGE OF 57. THEIR PENSION WILL BE SUSPENDED DURING THE EXTENSION BUT THEY WILL RECEIVE A GRATUITY AT THE END OF THE CONTRACT PERIOD. AFTER THE TWO YEAR EXTENSION THEY WILL GENERALLY BE REQUIRED TO LEAVE THE SERVICE, WHEREAS LOCAL OFFICERS MAY BE GIVEN FURTHER CONTRACTS UP TO THE AGE OF 60, AGAIN ON GRATUITABLE TERMS BUT WITH PENSION SUSPENDED. IF ANY OVERSEAS ADMINISTRATIVE OFFICERS CONVERT IN DUE COURSE TO THE PROPOSED NEW PENSION SCHEME WITH A NORMAL RETIREMENT AGE OF 60, THEY WILL ALSO GENERALLY BE REQUIRED TO LEAVE, WITH COMPENSATION, AT 57.

3. WE INTEND TO ANNOUNCE THESE PROPOSALS TO STAFF IN HONG KONG AS SOON AS POSSIBLE. THEREAFTER THEY WILL ALMOST CERTAINLY BECOME PUBLIC KNOWLEDGE. WE DO NOT WISH TO HAVE A MISUNDERSTANDING WITH THE CHINESE IN THIS IMPORTANT FIELD. SUBJECT TO YOUR VIEWS WE FEEL IT IS DESIRABLE TO INFORM THEM, IN A LOW KEY, IN ADVANCE. THERE IS A DEGREE OF URGENCY SINCE A NUMBER OF APPLICATIONS FOR EXTENSION OF SERVICE HAVE BEEN HELD IN ABEYANCE PENDING THE EXECUTIVE COUNCIL'S ADVICE.

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