TNAG-2268-FCO40-3267-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1991 — Page 46

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Mr Griffiths Finance Dept

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HONG KONG: COMPENSATION AND PENSION ARRANGEMENTS FOR MEMBERS OF HER MAJESTY'S OVERSEAS CIVIL SERVICE (HMOCS)

1. You will wish to be aware that we are about to write to the Treasury to seek approval for putting in place certain arrangements for Hong Kong members of HMOCS which recognise the change of sovereignty in 1997. The attached papers, which have been prepared in close co-operation with the ODA, explain the proposals and are self explanatory. The approach has been endorsed by Ministers.

2.

We have for many years been considering how best to handle this very difficult issue. We have three conflicting aims to accommodate: HMOCS officers, who want the same treatment as given in other colonies proceeding to independence: our commitment under the Joint Declaration to maintain stability and provide for a smooth transition; and our wish to keep costs down. The proposals are an attempt to meet all three.

3. We had discussions with the Treasury on these matters last year. We believe they will stand by their agreement in 1988 for compensation arrangements, but their initial reaction to sterling safeguards, was cool, to say the least. If the official level approach fails, the intention is that it should be taken up at Ministerial level.

4. The costs of these proposals will fall on the ODA Wing and, therefore, should not be of direct concern to you, But should you or RMD have any comments, I would be happy to receive them quickly please.

Mühl ustere

мял

M Stone

Hong Kong Department

WH304

270 2651

20 August 1991

cc: Mr Dew RMD

Mr Fish ODA Pensions Dept

ROFASX JRB

CONFIDENTIAL