SECRET
66523
MDHO. 1325 r
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. ONE IMPORTANT POINT WHICH WE CONSIDER TO BE RELEVANT IN THE HONG KONG CONTEXT IS 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 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.
6. THIS HMOCS OBLIGATION HAS BEEN HONOURED WITHOUT EXCEPTION IN ALL BRITISH DEPENDENT TERRITORIES UPON A CHANGE OF SOVEREIGNTY. THE EXACT FORMAT OF PREVIOUS COMPENSATION SCHEMES VARIED FROM TERRITORY TO TERRITORY TAKING ACCOUNT OF LOCAL CIRCUMSTANCES AND, IN MANY CASES, THE NEED TO ASSIST IN THE RETENTION OF FORMER HMOCS OFFICERS BY THE SUCCESSOR GOVERNMENT. IN THE CASE OF HONG KONG, WE WISH TO AVOID ENCOURAGING EARLY RETIREMENTS AMONG HMOCS OFFICERS WHICH MIGHT BE DISRUPTIVE FOR HONG KONG AT THE TIME OF TRANSITION. HMG THEREFORE INTEND THAT IN ACCORDANCE WITH PAST PRACTICE AND HONG KONG'S PARTICULAR CIRCUMSTANCES, PAYMENTS UNDER THE COMPENSATION SCHEME WILL BE PHASEDOVER A PERIOD FROM 1997 IN A WAY WHICH PROVIDES AN INDUCEMENT TO STAY. CONSULTATIONS WITH HMOCS OFFICERS ON THE DETIALS OF THE SCHEME WILL BEGIN IN HONG KONG SHORTLY. ALL ELEMENTS WILL BE WORKED OUT WELL BEFORE 1997 AND WILL BE PAID BY HMG DIRECT.
7. HMG WILL BRIEF THE CHINESE ON OTHER ASPECTS OF THE ARRANGEMENTS FOR HMOCS OFFICERS BEFORE DECISIONS ARE ANNOUNCED.
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