TNAG-2100-FCO40-2989-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 48

CONFIDENTIAL

HMG's influence on the way the benefits are handled.

anxiety about whether public service pensions will

Chinese sovereignty extends to local officers as well

HMOCS. HMG will therefore face pressure

as it

elsewhere

-

to look after local officers as well.

Secondly, the

secure under

as members of

has not done

6.

of employment

serve beyond

'no

The 1954 White paper undertakings about terms

after self-government for members of HMOCS who

independence are partly discharged in the case of Hong kong by Section IV of Annex 1 of the draft agreement, which includes a

detriment' provision in respect of all public service which

precedes the resumption of sovereignty. Pension rights under Hong Kong legislation (which makes no distinction between local officers

and HMOCS) are similarly safeguarded. Given these measures, five

further questions arise in respect of HMOCS.

SHOULD THERE BE A COMPENSATION SCHEME FOR HMOCS OFFICERS AFFECTED

BY CONSTITUTIONAL CHANGE IN HONG KONG, AND IF SO WHO SHOULD FINANCE

IT?

7.

There i s a good argument for

compensation arrangements

proceeding now to devise

They may need to be

be used

Kong Government introduce

for Hong Kong.

in the fairly near future i f the Hong

further arrangements for localisation, for example in the senior

ranks of the Administrative Service and the Police Force. Progress

here would also help to reassure staff that

that HMG was responding to

their concerns,

difficult areas.

establish suitable

and might lessen the pressure in other, more

I t is therefore recommended that we should aim to

compensation arrangements, and that officials

should enter into discussions with the Hong Kong Government.

8.

I t is considered that Hong Kong is well able to afford to meet

the costs of this and that any pressure for HMG to do so should be

resisted The maximum cost is estimated at a one

million at current prices and exchange rates. be spread over a number of years.

off payment of £25

It would be likely to

SHOULD ARRANGEMENTS BE INTRODUCED TO SAFEGUARD THE STERLING VALUE OF

PENSIONS EARNED FROM HMOCS SERVICE UP TO 1997?

9.

The standard

arrangement

enables the pension to be freely

CONFIDENTIAL