TNAG-2100-FCO40-2989-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 170

CONFIDENTIAL

6. We would wish to emphasise in paragraph 12 Mr Major's view, as recorded

in his letter of 19 December 1988 to Sir Geoffrey Howe, that the cost of any

scheme would not be an appropriate charge on the Aid programme.

7.

financed by HMG. He declined to give

•

so far in advance, but

agreed that it would not be an appropriate charge on the Aid programme.

Following..

Paragraph 13 could be usefully strengthened along the lines:

"The possibility of introducing а traditional general compensation

scheme, providing an actuarially assessed lump sum payment (averaging

about £70,000 at present values) for loss of career for all HMOCS members

still in service in Hong Kong in 1997, and immediate payment of pension

for those who choose to retire early in or after 1997, has already been

rejected by Ministers. The Joint Declaration guarantees a continuing

career to these officers. Furthermore, traditional compensation would

not encourage expatriates to continue in service; rather it would

encourage them to leave. This would be inconsistent with the intentions

of the 1960 White Paper, and contrary to our commitment under the Joint

Declaration. We have always judged that the Chinese would oppose a

scheme which was likely to have such a result."

8.

The final sentence of paragraph 14 could also be strengthened:

·

hope to receive. But would be a substantial addition (on average

about £7,000 a year at present values) to the already attractive Hong

Kong salaries (on average about £45,000 a year) they would continue to

command. Its effect would also be consistent with the intentions of the

1960 White Paper to encourage expatriates to remain in service."

9. As I have said in my covering note, I was surprised at the difference of

view expressed in paragraph 15, and it may be preferable to drop this option

altogether. For the record, however, the paragraph rather misses the point

about disassociation from the actuarially calculated lump sum for loss of

career. Whatever scheme we devise, we can expect strong representations to

revert to a traditional scheme. The main plank of our defence against this

must be that, because of the terms of the Joint Declaration, there need be no

2.

CONFIDENTIAL