1
Mr Paul, HKD
CONFIDENTIAL
RECEIVER
HKB 43I
NU
C
. 1990
HA
16.
From:
Paul Fifoot
Legal Advisers
Date: 11 July 1990
сс Mr McLaren
Mr Burns
35
38
HONG KONG GENERAL COMPENSATION SCHEME
1.
As a general comment the draft submission is confusing. The recommendation is to the effect that some form of compensation scheme should be adopted and that it should take into account the necessity of inducing officers to continue in service. It does not propose a particular scheme. There are then a series of paragraphs dealing with background which conclude with paragraphs 13, 14, 15 and 16 which to my mind read as encompassing four options. Thereafter, in the main paper a number of particular matters are dealt with and there are references, in different words, to various schemes, eg in the second part of paragraph 17, in paragraph 2 of the separate paper "cost of the scheme" and in Annex B "costings". But the various descriptions are not always consistent: for example from paragraph 17 one gets the impression that the "enhanced post-Tiananmen" would appear to refer to paragraph 16, but if Annex B is anything to go by it refers to paragraph 15.
2.
The paper would be greatly improved if at paragraph 17 it was clearly set out, on the lines of the first paragraph for each of the schemes described in Annex B, what the schemes are and what the codeword was for each scheme. Paragraph 17 should then go on to say something on the lines of "We have to decide which of these we follow; cost is highly important but it is difficult to estimate cost: see Annex X".
3.
On particular points I have the following comments:-
Paragraph 3: I understand that there is not to be a draft minute to the Prime Minister.
Paragraph 5: It should be made clear that the exclusion of Hong Kong etc related to the scheme of financial assistance not to the compensation scheme.
Paragraph 6: Compensation schemes frequently have the two elements to which you refer but they may or may not have come into operation in two stages. Compulsory retirement provisions, although they might come into operation before the general compensation scheme, could continue side by side with the general scheme.
3 PFAAL
CONFIDENTIAL
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