CONF
ITIAL
HMG'S OBLIGATIONS
6. HMG have an obligation enshrined in two white Papers of 1954 and 1960 to ensure that HMOCS officers are appropriately compensated for a change in their status arising from constitutional change. 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. Hong Kong HMOCS officers expect comparable treatment: and HMG have recognised publicly that Hong Kong's position raises similar issues to those of other colonies approaching independence.
THE TIMING OF A DECISION
1.
In the interests of maintaining a stable Administration in Hong Kong, we believe that HMG need to agree and to make known HMOCS the arrangements for HMOCS members as soon as possible. members hold important offices in the Hong Kong Civil Service, primarily the Administrative Service and the Police Force. Some 60% of Superintendents and higher ranks in the Royal Hong Kong Police Force are expatriates. Without these officers, the command structure of the Police Force would collapse and the Force would not be able to maintain law and order. officers in Hong Kong have recently expressed great dissatisfaction with progress in these matters. concerned that any further delay in a decision would damage Hong Kong at a time when there is a crucial need to preserve stability.
THE "ONE PACKAGE" APPROACH
8.
We are
HMOCS
For some time we have been considering the possibility of dealing with compensation and sterling safeguards as separate issues. The compensation arrangements which we have already agreed are a necessary ingredient in our package to keep HMOCs members in Hong Kong, but they will fall well short of HMOCS members' expectations, which are for a scheme along traditional lines allowing for early retirement and immediate payment of pension. The future value of these pensions is of fundamental concern to HMOCS members and without a safeguard scheme there would be little chance of our less attractive compensation proposals succeeding in ther objective of inducing people to stay on beyond 1997. The two issues must
The related question of therefore be dealt with together. SPOS is of immediate concern to HMOCS officers who have already retired - but serving officers are all too aware of the problems faced by their retired colleagues through exposure to fluctuating exchange rates and the Hong Kong Government have identified this as a major area of local
concern.
PICABA/2
CONFIDENTIAL
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