TNAG-2099-FCO40-2988-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 28

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Mr Fifoot, Legal Advisers

TKB 431/6

Reference RY

MAY 1990

RY

10. Taken

HONG KONG: COMPENSATION SCHEME FÖR-MEMBERS OF HMOCS

1.

We are now again taking forward the thorny question of a compensation scheme for HMOCS members. You may recall that our proposals involve the payment of money to serving members of the SARG for up to 9 years as an inducement for them to continue serving in Hong Kong. One of the problems with this that we have already identified is that the Chinese may not view this very favourably - since it will involve HMG making payments to serving members of the SARG.

2.

My reason for writing to you is to enquire whether you consider that such a measure would in fact constitute a breach of the Joint Declaration and the Basic Law. Both these documents make reference to the fact that foreign nationals shall be employed "only in their individual capacities and shall be responsible to the SARG". Payments by HMG to these officers might breach this clause.

3.

One way round this I suppose would be for HMG to establish a fund before 1997 to be administered by a neutral body say a large bank. Do you think that this would overcome any objections?

Do you consider that this may be a

problem area or is it imaginary?

dihl uffac

M Stone

Hong Kong Department

23 May 1990

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