TNAG-2097-FCO40-2986-HM-Overseas-Civil-Service-(HMOCS)-general-correspondence-1990 — Page 119

From The

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This remains the Government's position on the general issue of HMOCS in Hong Kong. Nevertheless, since the signing of the agreement on Hong Kong last December, we have been able to consider in more detail the specific issues that arise in the HMOCS context. The five issues listed in your letter of 26 October are:

(a) the continuation of HMOCS status in Hong Kong after 1997,

carrying with it eligibility to be considered for transfer and promotion to posts outside Hong Kong;

(b) preservation of pension rights by the future Hong Kong

Special Administrative Region Government in the event of any transfers as are envisaged as (a);

(c) the eligibility of post-1997 service to attract a

Supplementary Pension for Overseas Service (SPOS);

(d) compensation in the event of premature retirement

resulting from constitutional change in Hong Kong;

(e) the provision of safeguards for the sterling value.

of pensions earned under HMOCS up to 1997.

On (d) the Government accept that we should aim to achieve suitable compensation arrangements for members of HMOCS (and indeed for other pensionable overseas civil servants in Hong Kong) who are affected by the Sino-British agreement and the Chief Secretary of Hong Kong has accepted in the legislature that there will need to be a compensation scheme for those expatriate civil servants who are affected in 1997 by the terms of the agreement. We shall be considering this issue in more detail at the appropriate time, in consulation with the Hong Kong Government. We shall also discuss with them the possibility of sterling safeguards, though as you will be aware the Hong Kong dollar is currently very strong and we have every confidence that it will remain so.

As for (a), (b) and (c), we do not think that it would be compatible with the agreement on the future of Hong Kong for HMOCS officers who elect to remain in service in Hong Kong after 1997 to continue to be regarded as serving members of HMOCS. Nor do I think that this would be acceptable to the Chinese Government. So far as HMG are concerned, there would be no problem about considering such persons for transfer to such suitable posts as may exist (and they are likely to be very few) in other Dependent Territories after 1997. The preservation of pensions rights in these circumstances is covered by Section IV of Annex I of the agreement. Whether SPOS should be paid on pensions earned from service after 1997 is a question we cannot

/deal with