TNAG-2099-FCO40-2988-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 39

SECRET

FM HONG KONG

TO PRIORITY FCO

TELNO 1296

OF 20070OZ APRIL 90

4344

SECRET

017276 MDLIAN 5410

HKB 431.6

RECEIVED IN

- 9 MAY 1990

DESI

FOR HKD FROM SHIPLEY CSB

(22)

མར

YOUR TELNO 776 HMOCS: COMPENSATION: REVISED CALCULATIONS

1. THERE SHOULD REALLY BE A DIFFERENCE BETWEEN THE COMPENSATION PAYABLE FOR LOSS OF THE SECRETARY OF STATE'S PROTECTION AND THE PAYMENTS TO INDUCE OFFICERS TO CONTINUE TO SERVE. COMPENSATION WOULD NORMALLY BEAR SOME RELATION TO THE PERIOD DURING WHICH THE LOSS IS SUFFERED. UNDER YOUR PROPOSED FORMULA OFFICERS ON THE VERGE OF RETIREMENT IN 1997 WHO WOULD LOSE THE SECRETARY OF STATE'S PROTECTION FOR A MATTER OF MONTHS WOULD RECEIVE THE SAME COMPENSATION AS OFFICERS WHO STILL HAD 20 YEARS TO SERVE. THAT SAID, WE UNDERSTAND YOUR WISH TO DISASSOCIATE THE HONG KONG SCHEME FROM A CONVENTIONAL SCHEME AS FAR AS POSSIBLE AND WE WOULD NOT OBJECT TO YOUR PROPOSAL IF YOU FEEL THAT IS THE BEST THAT CAN BE DEVISED.

2.

THE ESTIMATED COSTS OF THE THREE VARIANTS OF THE SCHEME, TAKING INTO ACCOUNT THE DIRECTORATE PAY INCREASE EFFECTIVE FROM OCTOBER 1989 AND THE ANNUAL PAY ADJUSTMENT FROM APRIL 1990 ARE AS FOLLOWS:

(A) HKD 404M

(B) HKD 418M

(C) HKD 434M

DETAILS HAVE BEEN FAXED TO STONE.

WILSON

YYYY