CONFIDENTIAL
141267
MDLIAN 4151
4.
IN OTHER DISCUSSIONS ON CIVIL SERVICE MATTERS, E.G. CONCERNING THE NEW PENSION SCHEME, THE LIMITED COMPENSATION SCHEME AND RETIREMENT ARRANGEMENTS FOR THE JUDICIARY, ONE OF THE FIRST QUESTIONS ASKED BY THE CHINESE HAS BEEN WHETHER THE MEASURES PROPOSED WOULD BE ACCEPTABLE TO THE CIVIL SERVICE GENERALLY. SO FAR WE HAVE BEEN ABLE TO ASSURE THE CHINESE THAT THE STEPS WE WERE PROPOSING TO TAKE WOULD HAVE NO ADVERSE REPERCUSSIONS. IN THESE ASSESSMENTS WE HAVE BEEN PROVED CORRECT. WE COULD GIVE NO SUCH ASSURANCE IN THIS CASE.
5.
A FUNDAMENTAL POINT IN CONSIDERING THIS ISSUE IS THAT THE SAFETY OF PENSIONS IS AN ISSUE OF SERVICE-WIDE CONCERN. QUITE APART FROM THE EXCO AND LEGCO DISCUSSIONS REFERRED TO ABOVE, FOR THE ADMINISTRATION HERE TO BE PARTY TO A SCHEME WHICH PROVIDED HMOCS MEMBERS WITH SECURITY FOR THEIR PENSIONS, WHILE DOING NOTHING FOR THE REST OF THE CIVIL SERVICE, WOULD PUT A RISK THE STABILITY COHESION AND LOYALTY OF THE CIVIL SERVICE AS A WHOLE.
6. WE NOTE THAT THE TREASURY/ODA TEAM CONTINUE TO REFER TO HMOCS MEMBERS AS A DISTINGUISHABLE GROUP OF PEOPLE. THEY ARE, BUT ONLY BECAUSE OF THEIR RELATIONSHIP WITH HMG. THEY ARE APPOINTED TO HMOCS BY THE SECRETARY OF STATE. ANY SPECIAL OBLIGATIONS TO
THEM FALL TO HMG. THEY ARE NOT DISTINGUISHABLE AS A SEPARATE
GROUP WITHIN THE HONG KONG CIVIL SERVICE. IN SO FAR AS PENSIONS
ARE CONCERNED, ALL OFFICERS, LOCAL AND EXPATRIATE, ARE SUBJECT TO THE SAME TREATMENT UNDER THE SAME LEGISLATION.
7
.
SINCE 1987, WE HAVE BEEN EXAMINING WHAT FURTHER RE- ASSURANCES WE CAN GIVE TO ALL PENSIONABLE OFFICERS. IN ADDITION TO WHAT IS ALREADY WRITTEN INTO THE JOINT DECLARATION. SO FAR WE
HAVE BEEN UNABLE TO COME UP WITH A PRACTICAL AFFORDABLE SOLUTION.
WE ARE AGAIN LOOKING AT THE MATTER TO SEE IF THERE IS ANYTHING
MORE WE CAN DO. BUT WE MUST MAKE IT CLEAR THAT ANY MEASURES THAT
WE COULD INTRODUCE MUST BE FOR ALL PENSIONABLE CIVIL SERVANTS AND
WOULD NOT ENABLE US TO MAKE ADDITIONAL PROVISION FOR HMOCS MEMBERS.
HYPOTHECATED LOANS.
8 =
YOU WILL NOW HAVE SEEN MY TELNO 3924 AND THE CONSULTANT'S INTERIM REPORT. THE PROGNOSIS IS NOT TOO HOPEFUL. EVEN IF IT WERE, WE REMAIN UNCONVINCED THAT THE HYPOTHECATED LOAN SCHEME CAN PROVIDE ANY BASIS FOR A SOLUTION TO THE HMOCS PROBLEM. THE
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CONFIDENTIAL
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