SECRET
046371
MDHOAN 2285
INITIAL ONE WILL TAKE PLACE SHOULD SPAN THE WHOLE OF THE OFFICERS' REMAINING CAREER IN 'SERVICE OF THE HONG KONG SAR GOVERNMENT PUBLIC SERVICE OR SOME LESSER PERIOD. WE CONSIDER THAT AN OFFICER SHOULD RECEIVE HIS MAXIMUM POSSIBLE ENTITLEMENT ONLY IF HE CONTINUES IN SERVICE UNTIL NORMAL RETIREMENT AGE OR, IF A LESSER PHASING PERIOD IS DECIDED ON, UNTIL THE END OF THAT PERIOD IF EARLIER.
(B) WHETHER THE FIRST AND SUBSEQUENT PAYMENTS SHOULD ACCRUE ANNUALLY IN EQUAL PROPORTIONS OR WHETHER THERE SHOULD BE SOME SORT OF ''LOADING . FOR EXAMPLE, TO INCREASE THE BENEFIT TO THOSE WHO ARE COMMITTED TO CONTINUE IN THE SERVICE OF THE SARG, THE PROPORTION OF THE TOTAL ENTITLEMENT EARNED IN EACH YEAR COULD INCREASE TO REACH A PEAK IN THE FINAL YEAR.
6. IN ORDER THAT HMG SHOULD BE ABLE TO PLAN WITH A CLEAR IDEA OF THE COSTS INVOLVED, WE CONSIDER THAT IT WOULD BE NECESSARY TO FIX AS THE BASE FOR CALCULATING PAYMENTS, THE SALARY AS AT 1 JANUARY 1992 OF THE GRADE IN WHICH THE OFFICER IS SERVING ON THE RELEVANT PAYMENT DATE, CONVERTED INTO STERLING AT THE AVERAGE EXCHANGE RATE FOR 1991. HOWEVER THE DERIVED BASE VALUE COULD BE ADJUSTED ANNUALLY TO TAKE ACCOUNT OF THE MOVEMENT OF THE UK RETAIL PRICE INDEX.
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7 IT IS IMPORTANT THAT THERE SHOULD BE NO MISAPPREHENSION THAT THE ARRANGEMENTS TO BE MADE FOR HMOCS OFFICERS WILL IN ANYWAY AFFECT THE DUTY OF THOSE OFFICERS TO GIVE THEIR FULL LOYALTY TO THE HKG UP TO 30 JUNE 1997 AND TO THE GOVERNMENT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION THEREAFTER.
8. WE SHOULD BE GRATEFUL TO RECEIVE ANY WRITTEN COMMENTS ON THE PROPOSAL OUTLINED ABOVE BY 24 APRIL. WE THEN ENVISAGE THAT A SMALL TEAM OF OFFICIALS SHOULD VISIT HONG KONG IN THE WEEK BEGINNING 4 MAY IN ORDER TO DISCUSS POINTS ARISING WITH REPRESENTATIVES OF THE ASSOCIATION OF MEMBERS OF HMOCS IN HONG KONG AND OF ANY OTHER APPROPRIATE REPRESENTATIVE BODY. THEREAFTER WE HOPE TO ANNOUNCE DECISIONS ON THE DETAILS OF THE SCHEME EARLY IN JUNE.
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