TNAG-2096-FCO40-2985-HM-Overseas-Civil-Service-(HMOCS)-general-correspondence-1990 — Page 101

Thus their morale is presently at a low ebb and is unlikely to recover unless they have some re-assurance that their service is to be adequately compensated by the Crown. The Crown, that is H.M.G. Whitehall, has assumed responsibility for payment of pensions to expatriate officers in some Territories, which have achieved independence, and there would appear to be no reason to treat

differently expatriate officers who have served in Hong Kong should the need arise.

We appreciate that H.M. Government is bound by the Joint Declaration but there are poltical and economic uncertainties and we note that these have been recognised in the proposals to offer 'Right of Abode' to a number of our locally recruited colleagues. In respect of pensions for expatriate officers we consider that H.M. Government should be prepared to accept responsibility and we suggest as a fall back position a funded. pension could be set up to give some protection against uncertainties. This fund should be:-

(a)

funded, not revenue derived;

(b) offshore in mixed investments;

(c)

with professional trustees and fund managers;

(d) joint beneficiary controlled;

(e) with performance reinsurance.

I should be grateful for an assurance that H.M. Government will either give adequate guarantees to expatriate civil servants on the payment and value of pensions or failing that instruct the Hong Kong Government to set up a funded, off shore, pension scheme with professional trustees suitably designed to meet the same objectives.

Yours faithfully,

Знае

A.D. McInnes

President

c.c. Hong Kong Desk/Foreign and Commonwealth Office

Secretary for the Civil Service.