TNAG-2420-FCO40-3522-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 46

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FM FCO

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DESKBY 02003OZ HONG KONG

TELNO

OF 01170OZ APRIL 1992

INFO IMMEDIATE PEKING, UKREP JLG HONG KONG

PERSONAL FOR GOVERNOR

PLEASE PASS TO MR BURNS AND COX VISITING

DESKBY 02003OZ

OUR TELNO 560 AND YOUR TELNOS 925 AND 965: HMOCS: COMPENSATION

SCHEME DRAFT STATEMENT

1. In the light of detailed legal advice here on the text of

the draft statement in first tur, MIFT contains a revised draft.

For ease of comprehension, paragraphs below set out our thinking

and compare and contrast the statement with that in first tur.

2. We have retitled the scheme ''The Hong Kong HMOCS Scheme''

and use the formulation ''providing elements of compensation and

incentive'' in the body of the text. Our legal advice is that

referring to the scheme as one only involving compensation could Leave us exposed. It is highly debatable whether the payments

made subsequent to the first can be described, or would be

generally accepted as compensatory. The individual concerned has to do something to accept service in the SARG to obtain

REGACD/TG

HKD

M V STONE

270 2651

-SC" DU MOGAO * 200 CON 58294

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