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obligation to introduce some form of compensation arrangements
for HMOCS officers;
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b) since we shall need to consult the Chinese on any scheme, we should do so now, in advance of JLG XVI, putting the problems
and our preferred solution to them;
c) the most appropriate scheme, in terms of use of public funds,
offering an inducement to HMOCS officers to continue to serve
in Hong Kong up to and beyond 1997 and in line with our
responsibilities under the Joint Declaration, remains that agreed
by Ministers in 1988 and involved a limited compensation
payment in 1997 with a further nine annual payments available
to those who remain in service; and
d) we should aim to announce the scheme in early 1991
having cleared our lines with the Chinese and consulted the staff associations in Hong Kong.
Our best estimate of the likely cost of such a scheme over the
ten years from 1997 is [£16 million] at current prices and current
exchange rates. In order to eliminate the effect of salary
inflation in Hong Kong between now and 1997, compensation could be
based on today's salary levels of the relevant civil service
grades, to be increased only in line with inflation Hi".
4.
I submit a draft minute to the Prime Minister.
ODA agree.
The
Governor of Hong Kong is also content with this approach, which we have discussed with Treasury officials.
BACKGROUND
Historical Background: Obligations to Her Majesty's Overseas Civil Service (HMOCS)
HMG have long acknowledged that they have a special obligation towards members of HMOCS. The 1954 White Paper, which established
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