CONFIDENTIAL
continuing pensionable service in Hong Kong after 1997 are:
(a) eligibility to fill posts in other dependent territories; and
(b) eligibility of pensions earned in post-1997 service for British inflation-proofing (para 1) and for the application of exchange rate safe-guards negotiated for pre-1997 service (para 10).
17.
status
Crown,
The Chinese would certainly not accept the maintenance of HMOCS after 1997, which, since its members are servants of the would appear to be at variance with the statement in the
Joint Declaration that foreign nationals shall be employed only in their individual capacities and shall be responsible to the SAR HMG could however easily cover unilaterally the question of transfer to other dependent territories (such as they
Government.
are in and after 1997).
18. The retention of the benefits in para 16(b) is more difficult. This would be in line with previous practice to encourage officer to stay on after constitutional change. However, our policy should
be to try to ensure that such benefits we re paid for by the SAR
government, otherwise the cost would fall to HMG; and it would be
inconsistent for HMG to make such commitments to expatriate officers who were no longer
longer in Crown Service while denying the same
same benefits
to local officers for the Crown Service before 1997. There seems no
alternative to deferring a decision on the retention of these
are better able to assess the case for helping the retain the services of pensionable officers after
or not the SAR Government would be
A decision
benefits until we
SAR Government to
1997, and to assesS whether
willing to me e t the cost.
impossible before the 1990s.
is therefore
probably
CONFIDENTIAL
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