TNAG-2099-FCO40-2988-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 50

اته سي الماليك - بعد منيا محمد

SECRET

FM FCO

TO PRIORITY HONG KONG TELNO 776

OF 09103OZ APRIL 90

SECRET

HWB 43116 нив

RECEIVED IN RECISTRY

11 APR 1990

DESK OFFICER

175721

MDLOAN 1592

}

INDEX

Jandi

FROM HKD FOR SHIPLEY CSB

HMOCS: COMPENSATION. REVISED CALCULATIONS

1.

WE AND THE ODA HAVE BEEN GIVING FURTHER THOUGHT AT OFFICIAL LEVEL TO THE SCHEME WE HAVE NOW BROADLY AGREED. WE HAVE COME TO THE VIEW THAT WE SHOULD TRY TO REMOVE AS FAR AS POSSIBLE ANY LINKS WITH QUOTE CLASSIC UNQUOTE GENERAL COMPENSATION SCHEMES (GCS). WE THEREFORE SUGGEST THAT THE PAYMENT IN 1997 TO COMPENSATE FOR THE LOSS OF THE SECRETARY OF STATE'S PROTECTION SHOULD BE EXPRESSED AS A PERCENTAGE OF THE OFFICER'S THEN ANNUAL SALARY, RATHER THAN AS 10 PERCENT OF TOTAL COMPENSATION WHICH WOULD HAVE BEEN PAYABLE UNDER A CLASSIC GCS. WE COULD USE 20 PERCENT OR 25 PERCENT OF ANNUAL SALARY AS ROUGHLY EQUIVALENT TO THE 10 PER CENT COMPENSATION PAYMENT. SINCE THE FIRST INSTALMENT OF THE INCENTIVE PAYMENTS (25 PER CENT OF ANNUAL SALARY) WOULD ALSO BE PAYABLE IN 1997, AN HMOCS OFFICER WOULD THUS RECEIVE 45 PERCENT OR 50 PERCENT OF HIS ANNUAL SALARY IN THE FIRST YEAR THERE- AFTER THOSE WHO STAYED ON AFTER 1997 WOULD RECEIVE 25 PERCENT OF ANNUAL SALARY PER ANNUM.

2.

WE ARE WELL AWARE THAT HMOCS MEMBERS ARE LIKELY TO PRESS FOR A CLASSIC GCS. BUT WE THINK THERE ARE GOOD GOUNDS FOR ARGUING THAT HONG KONG SHOULD BE TREATED AS A SPECIAL CASE. THE CIRCUMSTANCES OF HONG KONG ARE UNIQUE IN THAT OFFICERS WILL BE ALLOWED TO REMAIN IN SERVICE WITH CONDITIONS NO WORSE THAN BEFORE AND THAT THEY CAN RETIRE IN 1997 WITH DEFERRED PENSIONS. GRATEFUL FOR YOUR VIEWS.

3. WE WOULD LIKE TO TAKE THIS MATTER FORWARD AFTER MR MAUDE'S RETURN FROM HONG KONG. WE WOULD THEREFORE BE GRATEFUL IF YOU WOULD SUPPLY US WITH REVISED COSTINGS TAKING ACCOUNT OF THE DIRECTORATE PAY REVISION AND THE ESTIMATED ANNUAL PAY ADJUSTMENT IN APRIL 1990. IT WOULD BE HELPFUL IF YOU COULD PROVIDE FIGURES FOR THE THREE POSSIBLE VARIANTS OF THE SCHEME, BASED ON (A) 10 PER CENT COMPENSATION: (B) 20 PER CENT OF ANNUAL SALARY (AS A SUBSTITUTE FOR THE COMPENSATION PAYMENT): AND (C) 25 PER CENT OF ANNUAL SALARY (AS A SUBSTITUTE FOR THE COMPENSATION PAYMENT).