TNAG-2269-FCO40-3268-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1991 — Page 231

Mr. Ricketts, HAD

нко

CONFIDENTIAL

13 September 1991

HKB 235

235/1

JE Mortimer Esq AEFI Division

HM Treasury Whitehall

London SW1

File: HKD

Foreign & Commonwealth

Office

London SW1 2AH

133

Mr Williamson 2713

1719

Jaar Martimies

Дон

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

I am

1. In my absence, Nigel Cox in Hong Kong Department recently wrote to your predecessor about HMOCS matters. sorry that he did not realise that you had taken over from Peter but I hope the letter nevertheless found its way to you. For ease of reference, however, I attach another copy.

2.

I appreciate that these are complex issues, having considerable potential financial implications. Cox's letter made clear that we consider these issues need to be tackled now. This view has been reinforced by the Prime Minister's visit to Hong Kong, where the Prime Minister was equipped with the same defensive line on this subject agreed with your Department for the visit by Lord Caithness a month earlier. The Senior Unofficial Member of the Executive Council, Baroness Dunn, raised the concerns of HMOCS members with the Prime Minister when he met the Hong Kong Executive Council. She argued that the Civil Service was facing an unusual situation in that it was employed by one Government yet its pensions would be paid by another. Fears needed to be allayed. She mentioned two groups of particular concern: members of HMOCS and pensioners who had retired to the UK. was important that HMG find a way to guarantee their pensions. Hong Kong could not afford a loss of confidence and morale, especially among the police. The Prime Minister said that he accepted Lady Dunn's point regarding the Civil Service and payment of pensions and that the aim should be to reassure people in good time so that the morale and efficiency of the Civil Service was not affected. The Foreign Secretary noted that concrete proposals were under discussion with the Treasury and that the importance of reaching an early agreement had been stressed.

ARPATW/CC/1

CONFIDENTIAL

It