SECRET
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(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. HMG have therefore now 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 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
66.24
Tutor word
STOCK NO. C037C
YFB7
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