TNAG-1548-FCO40-2112-Future-of-the-Hong-Kong-public-service-1986 — Page 17

Subject

Object

CONFIDENTIAL

-

4 -

CONFIDENTIAL

Latest Position

that it was unlikely that the new scheme would be implemented in April 1987, and that because of Chinese "objections" the provision of the existing scheme would be adversely affected.

The statement by the delegation on their return from Beijing on 28.9.86 that an identity of views on all principal features has been reached, that a few more technical points would have to be sorted out through diplomatic channels, and that another round of expert talks would not be necessary should help to settle the service.

Nevertheless staff in general are still eager to know the results early and union leaders are publicly expressing their frustration at the delay.

The Hong Kong Chinese Civil Servants Association has renewed its proposal for a reserve fund to be set up for pension payment. The idea was mooted by some staff in 1984 when the new scheme was first proposed. There is no doubt that staff in general would welcome it as a form of insurance, and this indicates the continuing worries about the ability of the SAR, and the Chinese Government to foot the penison bill.

/pg 5

...