TNAG-2099-FCO40-2988-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 113

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This contrasts sharply with our former colonies who were in the main extremely poor and therefore found the payment of pensions externally a severe drain on scarce foreign currency reserves. Remember also that it was de rigueur for new heads of states to have been imprisoned by the British before we handed over. It could be argued that the Hong Kong expatriates have therefore a lot less to fear about "staying on" than did their counterparts in other places.

11.

In the light of this scenario let us now look at Colonial 306 and Cmnd 1193. Paragraph 6 of Colonial 306 lays down HMG's special obligation to members of HMOCS and this we are doing SO far as is practicable nearly 40 years after that paper was introduced in that:

a.

b.

c.

The Treaty and the Basic Law ensure that their conditions of service and pensions will not alter ie 6(1) and (2).

Undertakings (3), (4) and (5) have long since ceased to have any relevance although ODA's Overseas Manpower Department would be happy to consider anyone who wished to apply for a contract appointment

overseas.

Hong Kong have a limited scheme in place which will cater for premature retirements up to 1997. Presumably all those who cannot be offered other than a full career with the SAR will receive benefits and have gone by July 1997.

As to paragraph 7, many of the important sections of а POA are already in place but we have not ruled out the possibility of drawing one up nearer 1997.

12. The first sentence of paragraph 17 of Cmnd 1193 sets the scene

. "the terms of future schemes must remain, as has been the case in the past, a matter to be settled between HMG and the government of the territory concerned, after consultation with the local staff associations and in the light of the circumstances prevailing in the territory". It will doubtless be argued that this statement is negated by 7(a) which states that when the Secretary of State's control passes, overseas officers should be entitled to retire with compensation. The contrary view is that these words, written 30 years ago, were designed to cater for the "normal" handover to a new government and its authors could not have foreseen the circumstances which would prevail when Hong Kong passed from British rule. The expatriate staff have a guarantee of a continuing career and therefore ". . . it is undesirable that compensation be paid in a form which is an inducement to retire". To some extent all this is rather academic. It has been agreed that the special circumstances in Hong Kong demand a different approach, and we have a measure of agreement about what the appropriate response should be. Only time will tell if we have a package which will achieve our overriding objective namely to retain the services of HMOCS staff for as long as possible beyond 1997.

Bhis four

MRS C B JOHNSON

Overseas Pensions Department

12 June 1990

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