TNAG-2418-FCO40-3520-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 95

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DRAFT STATEMENT ON HONG KONG HMOCS

1. Her Majesty's Government recognise that members of Her Majesty's Overseas Civil Service in Hong Kong wish to

know as soon as possible how the Government intend to make

provision for HMOCS in the special circumstances of Hong

Kong's becoming a Special Administrative Region of the

People's Republic of China of 1 July 1997.

2. The Joint Declaration and Basic Law provide good

guarantees for continuity of service with pay, conditions

and pensions on terms no less favourable than before 1997.

Nonetheless the Government accept that HMOCS officers

serving in Hong Kong on 30 June 1997 will also be entitled

to a measure of compensation for the loss of the Secretary

of State's protection and, to a certain extent, of career prospects; and that it is desirable that there should be some safeguard of the sterling value of their pensions in the event that the Hong Kong dollar significantly declines in value against sterling.

3.

Measures introduced to these ends should contribute to

ensuring a smooth transition in 1997 and should encourage

maximum continuity in the Hong Kong public service after 1997, in order to maintain and preserve Hong Kong's economic prosperity and social stability. They should also be fair

to the officers concerned, while involving the minimum

necessary cost to the taxpayer.

4.

The issues are complicated, and despite intensive work the process of drawing up appropriate arrangements has taken longer than envisaged. The Government are grateful for the sense of responsibility and patience shown by HMOCS

officers. The Government have now formulated a proposal for

a scheme providing elements of incentive and compensation. We look forward to opening consultations about this with

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