SECRET
territories moving towards constitutional change.
In the case of
every other dependant territory achieving independence, compensation
has always been paid by HMG to HMOCS officers in connection with
"the loss of Secretary of State protection" arising from
constitutional change. Hong Kong HMOCS officers expect comparable
treatment.
4. We and the ODA, in consultation with the Hong Kong Government,
have been working for some time on a general compensation scheme for
Hong Kong. The scheme we have in mind would be somewhat different
from the traditional compensation schemes. In an effort to induce
HMOCS officers to stay on after 1997, and in the interests of a
smooth transition in 1997, we envisage an arrangement where by only
limited compensation will be paid to those who left at the change of
sovereignty. Further compensation payments will be made over a
number of subsequent years.
[
5. OD (K) decided in 1985 that we
should aim for the general
compensation scheme to be financed in Hong Kong. This is however impraticable because it would be very devisive in Hong Kong if
expatriates were to benefit from a locally funded scheme, while
Local officers received nothing.
6.
In the course of 1988 we made considerable progress towards
securing a ministerial decision about the scheme. In December 1988
the Chief Secretary to the Treasury gave his agreement to the then
Secretary of State's proposal that a general compensation scheme should be set up for members of HMOCS in Hong Kong with funding from
HMG, although he set aside a decision on how to meet the cost of
the scheme in PES terms (an estimated £10-20 million) until nearer
the time of the scheme coming into effect. Sir G Howe concluded
however that the time was not right to put the proposal to the Prime
Minister as there were
were a number of other financially contentious
issues involving Hong Kong which remained to be resolved.
DETAILS OF SCHEME
7. Following detailed discussions with Hong Kong on the numbers of
HMOCS officers likely to be involved and the details of the scheme, we are now able to put forward the following and concrete
SECRET
No comments yet.
Private notes are available after approval.