6. Compensation schemes were normally introduced in two stages: a limited scheme, to cover compulsory retirement to faciliate the localisation of posts before independence; and a general scheme, offering HMOCS officials the option to retire at independence or later with immediate payment of pensions and compensation for loss
of career.
7. The circumstances of Hong Kong are of course different from previous cases because the territory will not become independent. But Ministers have consistently stated since the signature of the Joint Declaration on Hong Kong that the transfer of sovereignty in 1997 raises issues regarding HMOCS comparable to those raised in other dependencies at independence.
Expectations of HMOCS in Hong Kong
8.
HMOCS in Hong Kong consider that on the basis of these undertakings and numerous precedents, they are entitled to expect the introduction of a general compensation scheme before 1997. They will be supported in this claim by the overseas pensioners' lobby in the UK and their Parliamentary supporters. Anything less than a full-blown scheme on traditional lines will be subject to criticism
in varying degrees from these quarters.
The need for a scheme
9.
The Governor of Hong Kong strongly believes that there must be a general compensation scheme if key expatriate personnel are to be retained up to and beyond 1997, providing necessary continuity and
stability. He considers that if there is no such scheme, or if a decision on a scheme is postponed, these personnel will lack sufficient incentive to stay.
This would have serious consequences
for morale, especially in the police force, and hence for our administration of Hong Kong.
10.
A number of members of HMOCS in Hong Kong, principally police.
WEDABH/3
CONFIDENTIAL
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