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CONFIDENTIAL
C2
CONFIDENTIAL
DECK BY FO0 1232000
DECKDY PEKING 1009001
FI HUNC KONG 1208152 LPP 85
TO IMMEDIATE F CO
TELEGRAM NUMBER 707 OF 12 APRIL
INFO IMMEDIATE PEKING
YOUR TELSHOS 505 AND 505 : POSITION OF HNOCS
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1. THE FOLLOWING ARE OUR PRELIMINARY COMMENTS ONLY. THE PROPOSED REPLY TO THE OVERSEAS SERVICE PENSIONERS ASSOCIATION COULD HAVE SUBSTANTIAL CONSEQUENCES FOR THE FUTURE MAMANGEMENT OF THE HONG KONG PUBLIC SERVICE AS A WHOLE. THE TIME HAS THEREFORE COME TO APPRAISE EXCO OF THE SITUATION AND TO SEEK THEIR VIEWS. IN CONSEQUENCE I SHOULD BE GRATEFUL IF YOU WOULD DEFER A REPLY TO THE OPSA FOR THE TIME BEING.
2. WE NOTE THE ARRANGEMENTS AGREED BY MINISTERS FOR DEALING WITH THE POSITION OF HMOCS OFFICERS AS SET OUT IN YOUR FIRST TUR AND WISH TO MAKE THE FOLLOWING POINTS:
(A) COMPENSATION SCHEMES.
TO BE ON THE SAFE SIDE WE SHALL NEED THE LIMITED COMPENSATION SCHEME AVAILABLE FOR USE WITHIN EIGHTEEN MONTHS' TIME AT
THE OUTSIDE. THIS MEANS WE SHALL NEED TO HAVE FIRM PROPOSALS READY WITHIN SIX MONTHS FROM NOW TO ALLOW TIME FOR EXCO'S AGREEMENT TO BE OBTAINED, STAFF TO BE CONSULTED AND THE NECESSARY AMENDMENTS MADE TO THE PENSIONS ORDINANCE.
WHERE A COMPENSATION SCHEME IS TO BE FUNDED FROM LOCAL REVENUE, THIS WILL REQUIRE THE APPROVAL HERE OF EXCO AND THE FINANCE COMMITTEE OF LECCO. THEY WILL BE QUICK TO POINT OUT THAT IN PREVIOUS CASES THE LOCAL GOVERNMENT HAS NOT BEEN ASKED TO BEAR IN FULL THE COST OF COMPENSATING OFFICERS RECRUITED OVERSEAS BY
OR ON BEHALF OF THE SECRETARY OF STATE FOR LOSS OF CAREER PROSPECTS. YOU WILL BE AWARE THAT PARAGRAPH OF THE PAMPHLET ''SERVICE WITH OVERSEAS GOVERNMENTS' ,, (CMND 1193) STATED THAT FOR FUTURE COMPENSATION SCHEMES HMG WOULD SHARE THE COST EQUALLY WITH OVERSEAS GOVERNMENTS.
(2) STERLING SAFEGUARDS
WE MAINTAIN THE VIEW THAT THE ISSUE OF STERLING SAFECUARDS FOR HMOCS PENSIONS IS A HATTER FOR CONSIDERATION MUCH KEARER TO 1907. IT CANNOT DE CONSIDERED SEPARATELY FROM PENSION ENTITLEMENTS OF LOCAL OFFICERS AND THE WHOLE QUESTION IS THUS FRAUGHT WITH DIFFICULT AND DIVISIVE ISSUES BOTH AC REGARDS CATEGORIES OF OTHER POSSIBLE BENEFICIEARIES, AREAS OF APPLICABILITY AND SOURCES OF FUNDS. HE HAVE ALREADY POINTED OUT THAT THE INTRODUCTION OF A GUARANTEED STERLING EXCHANGE RATE NOW FOR HMOCS OFFICERS WOULD LEAD TO TWELVE
CONFIDENTIAL
/YEARS
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