TNAG-2417-FCO40-3519-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 232

CONFIDENTIAL

HONG KONG: HER MAJESTY'S OVERSEAS CIVIL SERVICE (HMOCS)

The Problem

X

X.

1. HMG have a standing commitment, set out in two White

Papers of 1954 and 1960, to ensure that HMOCS members are

compensated and their interests safeguarded, in the event of a change in their status arising from constitutional change. In practice HMG have ensured the payment of compensation and the provision of sterling safeguards for pensions in the

case of every other dependent territory moving along the

path to independence. Hong Kong HMOCS members expect

comparable treatment: and HMG have recognised publicly that

Hong Kong's position raises similar issues to those of other colonies approaching independence. (Summary of White Paper

undertakings, and Ministerial statements on the public

record, are at Annex A).

2. The arrangements introduced in previous territories always included a sizeable payment of compensation to recognise the loss of the Secretary of State's

art gy live prospects

protection, and/or the right to retire at independence with

of early payment pension and a sterling safeguard for that pension. These arrangements were usually made in a Public Officers Agreement under which the newly independent government undertak to pay for them. In most cases

however, HMG funded the arrangements through aid.

But

3. The result in other territories was a rapid departure of HMOCS members at independence or shortly thereafter. our objective in Hong Kong is to encourage as many HMOCS officers as possible to stay in their posts up to 1997 and

beyond, to help secure a stable and prosperous Hong Kong and

a smooth transition in 1997. A collapse of confidence in

Hong Kong would involve heavy financial and political costs

for HMG.

NFJABA/1

CONFIDENTIAL