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CONSIDER THAT THE SEVERANCE PAYMENTS SHOULD BE MADE TO OFFICERS OVER A NUMBER OF YEARS, IE ONLY OFFICERS WHO STAY FOR SEVERAL YEARS, OR UNTIL NORMAL RETIREMENT AGE IF THAT IS EARLIER, SHOULD RECEIVE THE FULL PAYMENT. THE DETAILS OF THESE PHASING ARRANGEMENTS WILL ALSO BE THE OBJECT OF CONSULTATION WITH HMOCS OFFICERS: AT THIS STAGE THE UNITED KINGDOM GOVERNMENT ENVISAGE THE PHASING PERIOD AS LASTING BETWEEN 5 AND 10 YEARS.
9. THE QUESTION OF FUNDING THESE ARRANGEMENTS HAS BEEN THE SUBJECT OF LENGTHY DISCUSSION BETWEEN THE UK GOVERNMENT AND THE HKG OVER SEVERAL YEARS. TRADITIONALLY IT WAS THE RESPONSIBILITY OF THE FORMER DEPENDENT TERRITORY TO PAY FOR SUCH COMPENSATION, ALTHOUGH IN MANY CASES (IE THE LESS DEVELOPED DEPENDENT TERRITORIES) THE UK EVENTUALLY PAID ALL OR PART OF THE SUM AS AN AID MEASURE. THE UK GOVERNMENT'S PREFERENCE WOULD BE FOR THE HKG TO PAY FOR THE HONG KONG SCHEME, AND WE DO NOT BELIEVE THAT THE TOTAL COST (PERHAPS SOME 40 MILLION POUNDS) WOULD BE UNREASONABLY ONEROUS FOR HONG KONG'S FINANCES. SINCE ITS FORMATION IN 1954 HMOCS OFFICERS HAVE GIVEN OUTSTANDING SERVICE TO HONG KONG AND MADE IMPORTANT CONTRIBUTIONS TO ITS PRESENT ECONOMIC PROSPERITY AND SOCIAL STABILITY. WE BELIEVE THAT THE SCHEME AS DEVISED WOULD BE VERY MUCH IN HONG KONG'S INTERESTS, ENCOURAGING EXPERIENCED OFFICERS TO STAY IN SERVICE UP TO 1997 AND BEYOND. HOWEVER THE HKG DO NOT BELIEVE THAT THE LEGISLATIVE COUNCIL OF HONG KONG WOULD AT PRESENT BE WILLING TO APPROVE THE FUNDS NECESSARY TO FINANCE SUCH A SCHEME. THEY ALSO BELIEVE THAT IN PRESENT CIRCUMSTANCES A PUBLIC DEBATE ON THIS SUBJECT WOULD BE DIVISIVE AND DAMAGING. IT WOULD IN THEORY BE POSSIBLE TO LEAVE THE FUNDING QUESTION TO BE SETTLED NEARER TO 1997, PERHAPS AFTER THE ELECTION OF THE NEW LEGISLATIVE COUNCIL. HOWEVER THERE IS A NEED FOR CERTAINTY NOW. ACCORDINGLY THE UK GOVERNMENT HAVE DECIDED THAT AT LEAST IN THE FIRST INSTANCE THEY WILL FINANCE THE SCHEME. HOWEVER IF CIRCUMSTANCES CHANGE THEY MAY LATER WISH TO INVITE THE HKG OR THE SARG AS APPROPRIATE TO CONSIDER WHETHER HONG KONG COULD TAKE IT OVER OR MAKE A
CONTRIBUTION TO IT.
10. THE OBLIGATION TO INTRODUCE SPECIAL ARRANGEMENTS FOR HMOCS OFFICERS IS A CONSTITUTIONAL ONE WHICH HMG CANNOT SHIRK. THIS IS A PROBLEM LEFT OVER FROM HISTORY WHICH NOW REQUIRES SOLUTION. THESE ISSUES HAVE BEEN OUTSTANDING SINCE 1985. THE NEED TO CONCLUDE THEM NOW HAS BEEN REINFORCED BY THE IMMINENT APPROACH OF THE DEADLINE DATE FOR ALL HONG KONG CIVIL SERVANTS TO OPT WHETHER OR NOT TO JOIN THE NEW PENSION SCHEME.
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