TNAG-2269-FCO40-3268-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1991 — Page 107

CONFIDENTIAL

Mr Footman

G

PM/85/18

PRIME MINISTER

1A

CA

АКК

256/2

SJH

ترير

1

Treatment of members of Her Majesty's Overseas Civil Service

(HMOCS) in Hong Kong

1. On 12 September 1984 OD(K) considered my minute to you

on Hong Kong public service pensions. The minute noted that

"HMG has long accepted a general political obligation in

respect of members of Her Majesty's Overseas Civil Service

to protect their pensions after constitutional change and

in extremis to take over the payment of them if the successor government defaults". It posed the question whether HMG should,

quite apart from the question of HMOCS, accept a contingent

liability in the event of default by the SAR government for the

whole body of Hong Kong Civil Service pensions, including those

of local civil servants.

2.

OD(K) concluded that no such general contingent liability

should be accepted, and that HMG's responsibilities were to

ensure that adequate arrangements for Hong Kong pensions were

made in the agreement with the Chinese.

3. We now need to consider if and how the main body of

doctrine on HMOCS should be applied to HMOCS officers in Hong Kong. The subject is complex, and the details have therefore been set out in the attached Memorandum, prepared in conjunction with the ODA Pensions Department. Policy on these matters should be settled soon both to help maintain the morale of the

Overseas Civil Service in Hong Kong, and because we are under

pressure from the Pensioners' Association and in Parliament

to give commitments in respect of the treatment of such officers in Hong Kong.

14.

CONFIDENTIAL