TNAG-2100-FCO40-2989-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 71

NOTE FOR THE MEETING

CONFIDENTIAL

The current proposal may be inexpensive but it does not appear to meet welk any other criteria for a successful

scheme.

There are four potentially conflicting aspects to this

issue:

(i) HMG: we wish, (a) at the minimum necessary

expenditure, (b) to fulfil those commitments to HMOCS members which we think are required to satisfy Parliament while (c) at the same time maintaining a

stable administration in Hong Kong up to 1997 and, if

possible beyond.

(ii) HMOCS Member: who wish to receive the same general

package as in previous colonies: actuarially assessed compensation at a given sterling rate payable on 1 July 1997 and the early payment of pension.

(iii) The Chinese Government: whose reaction to any scheme

is difficult to predict. A scheme which involved payments by HMG to serving SARG officers is likely to create clear suspicion. A scheme which would lead to

an exodus of HMOCS members in 1997 could also be

viewed with suspicion. No scheme might be their

favoured option.

(iv) HKG: which will want to ensure that whatever HMG does

it will t lead to a split in the civil service (essentially the Police and the Administrative Service) between HMOCS members and local officers or

ALDAEU/1

CONFIDENTIAL