WE AGREA
THAT
THE FACT RETIAIKS
HOWEVER
THAT
MAY P
Kong Government no longer has the huge budget surplus it had two years ago. We cannot rule out the possibility of further large civil service pay increases the question of how to limit our potential commitment is My something we will need to address. One possible option is set out in para 8 of the draft OD (K) paper.
(iii) Duration of scheme
5.
THEREFORE
You say that there does not seem to be any particular reason why the scheme has to run as long as ten years. We have a clear obligation under the Joint Declaration to work for the smooth transfer of government in 1997. When we come to consult the Chinese about this scheme it would be difficult to claim that we were being sincere în observing this commitment if we were to limit the scheme to say years. We will need to be able to demonstrate that the whole purpose of the scheme is to ensure that HMOCS members remain committed to Hong Kong in the long term and continue to serve out their careers there.
(iv) Timing of announcement
6.
The
There are a number of reasons why we cannot afford to delay announcement of the scheme much longer. Pressure among HMOCS and other expatriate officers in Hong Kong for an early decision is growing. As Sir David Ford, emphasised when he came to see me on 31 yesterday, this pressure is particularly strong among the expatriate police officers on contract terms who will have to decide very soon whether to transfer tà pensionable terms. officers concerned claim that they cannot properly exercise the option to transfer to pensionable terms until they know whether there will be a General Compensation Scheme. There is a similar problem related to the new pension scheme promulgated in 1987 which provides for retirement at 60 (instead of the normal age of 55) with a slower pension earning rate but with the possibility of commuting 50% of salary in a lump sum instead of 25%. Those wishing to take advantage of this scheme have to make their minds up by July 1992. This is a real deadline which cannot be extended. If we do not make any announcement about the compensation/incentive Scheme before then, those concerned could claim that important information had been withheld from them which could have affected their decision. In such circumstances legal action could not be ruled out. For presentational reasons, there would also be advantage in announcing the Scheme at about the same soon time as the Nationality paskage This wálldhelp to minimise the potential divisiveness of the Scheme since most legal officers-in senior grades are likely to qualify for British citizenship-under the nationality package.
AFTER
HOME KON U
THE CHIEF SECRETARY
IT WOULD ENABLE US TO
POINT BUT THAT SOMETHING
WAS BEING DONE
SEA, AND SATS FOR BUTH EXPATRUMIE
AND LOGA
BILL BECOMES
LAW AND
START TO
STAFF.
CONFIDENTIAL
BE IMPLEMENTZO.
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