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MDHOAN 1252
EXPATRIATE OFFICERS SERVING ON PERMANENT AND PENSIONABLE TERMS OF SERVICE. DESPITE HKG'S LOCALISATION POLICY, ABOUT 400 ARE LIKELY STILL TO BE IN SERVICE IN 1997. IN ADDITION APPROXIMATELY 240 OFFICERS SERVING ON CONTRACT TERMS, WHOSE INITIAL APPOINTMENT WAS MADE BEFORE MARCH 1985, RETAIN THE RIGHT TO APPLY TO TRANSFER TO PERMANENT AND PENSIONABLE TERMS OF
SERVICE AND THEN TO ENROL IN HMOCS.
5. HMG HAVE HISTORICALLY ACCEPTED A SPECIAL OBLIGATION TOWARDS
MEMBERS OF HMOCS WHEREVER THEY SERVE. THIS OBLIGATION WAS SET OUT IN 1954 AND 1960 POLICY STATEMENTS BY HMG AND ESTABLISHED
THROUGH PRACTICE AND PRECEDENT IN ALL OTHER DEPENDENT
TERRITORIES AND BY UK PENSIONS LEGISLATION. THE MAIN POINTS WHICH WE CONSIDER TO BE RELEVANT IN THE HONG KONG CONTEXT ARE THAT WHEN, AS A RESULT OF CONSTITUTIONAL CHANGE, THE SECRETARY OF STATE CEASES TO HAVE AUTHORITY OVER HMOCS OFFICERS AND THEY COME UNDER THE AUTHORITY OF A SUCCESSOR GOVERNMENT:
(A) HMG SHOULD ENSURE THAT ALL HMOCS OFFICERS ARE COMPENSATED FOR THE LOSS OF THEIR HMOCS STATUS AND THE AUTHORITY OF THE
SECRETARY OF STATE WHICH THAT ENTAILS.
(B) HMG SHOULD ENSURE THAT ALL OFFICERS WHO ARE RETAINED IN THE
SERVICE OF THE PREVIOUSLY DEPENDENT TERRITORY SHOULD ENJOY TERMS OF SERVICE NO LESS FAVOURABLE THAN BEFORE, INCLUDING WITH RESPECT TO SALARIES, ALLOWANCES, BENEFITS AND PENSIONS ENTITLEMENTS.
(C) HMG SHOULD ENSURE THAT ARRANGEMENTS ARE MADE TO PROVIDE FOR
THE PROTECTION OF THE STERLING VALUE OF THE FORMER HMOCS OFFICERS' PENSIONS, THROUGH THE INTRODUCTION OF A FIXED STERLING EXCHANGE RATE ADJUSTED IN LINE WITH UK INFLATION.
6.
THE HMOCS OBLIGATION HAS BEEN HONOURED WITHOUT EXCEPTION IN
ALL BRITISH DEPENDENT TERRITORIES UPON A CHANGE OF SOVEREIGNTY. IN THE CASE OF HONG KONG SOME ASPECTS OF THE NORMAL ARRANGEMENTS HAVE ALREADY BEEN COVERED BY THE JOINT DECLARATION AND BASIC LAW (IE POINT (B) ABOVE). THE OTHER ISSUES ARE COMPLEX AND CONSIDERATION OF THEM IS TAKING TIME.
DECIDED TO ADDRESS THE DIFFERENT ELEMENTS SEPARATELY, BEGINNING WITH THE QUESTION OF COMPENSATION. CONSULTATIONS WITH HMOCS OFFICERS ON THIS SUBJECT WILL BEGIN IN HONG KONG SHORTLY.
7. THE EXACT FORMAT OF PREVIOUS COMPENSATION SCHEMES VARIED FROM
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