CODE 18-77
SECRET
Reference...
sufficient inducement on their own to they were wealthy enough to offer attract and retain expatriate
It staff.
could be argued that Hong Kong members of HMOCS are therefore excluded; the conditions outlined in the White
but were designated under OSAS Paper applied to those expatriates who
I think with a passage of 30 years this would be regarded as hair-splitting so far as the question of "traditional" compensation expectations are concerned.
Why Hong Kong is different to every other colony
was
7. In the past there had been an assumption that HMG might seek to extend the lease of the New Territories as 1997 approached - although the possibility The indications are that this would not happen must have been just as strong. that recruitment officers fudged the issue when broached by candidates; the to rationale being that Hong Kong needed expatriates if the Government function efficiently. However, it has been known since Mrs Thatcher visited China in September 1982 that there will be no extension of the lease. Hong Kong expatriates will therefore have had a period of 15 years in which decide their future. This puts them in an entirely different position to those in former colonies where dates of independence were often effectively arranged at very short notice eg within year of the first constitutional conference.
a
to
8. Unlike former colonies where there was usually a rapid localisation of posts immediately after independence Article IV of the Treaty states.
The
on the basis of "Appointment and promotion of public servants shall be qualifications, experience and ability. Hong Kong's previous system of recruitment, employment, discipline etc shall, save for any provisions providing privileged treatment of foreign nationals, be maintained". Basic Law also provides that "public servants previously serving in Hong Kong in all government departments
may remain in employment and continue their service with pay allowances benefits and service no less favourable than before.
conditions of
Public Officers' Agreements drawn up at independence merely said that "the conditions of service . . . shall not be less favourable than those which were applicable to him immediately before the appointed day".
more secure
Europeans serving in Hong Kong therefore have the guarantee of a future post "independence" than did their predecessors in other territories.
to go
9. It is important to remember that Hong Kong's new pension scheme allows officers the option of "freezing" their pensions should they decide early. This is а feature which is new in the overseas pension field and parallels the PCSPS. Officers in all our former colonies lost their earned pensions if they did not serve for a minimum period of 10 years Bond did not retire in pensionable circumstances (normally at age 55, but in some with the permission of the Governor and 45 with the Secretary of permission).
members of was therefore necessary to make provision for
The HMOCS to voluntarily "retire" early without loss of pension rights. immediate payment of pension was simply an element of the compensation package and effectively reduced the actuarially assessed lump sum for loss of career.
10.
It
cases 50 State's
It seems Further factors which might be worth taking into consideration. likely that when the SAR is set up in 1997 Hong Kong will still be wealthy; the Treaty and Basic Laws have been agreed with a long established government which is therefore unlikely to abrogate any undertakings it may have given.
2.
SECRET
No comments yet.
Private notes are available after approval.