TNAG-2420-FCO40-3522-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 93

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INFO IMMEDIATE PEKING, UKREP JLG HONG KONG

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PERSONAL FOR RICKETTS, HKD

PEKING PERSONAL FOR AMBASSADOR

UKREP JLG PERSONAL FOR GALSWORTHY

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YRTELNO 585 AND PEKING TELNO 470: HMOCS: DRAFT STATEMENT FOR

CONSULTATIONS

1. ANSWERS TO YOUR QUESTIONS IN TUR, USING THE SAME PARAGRAPH NUMBERING, ARE AS FOLLOWS:

(A) LIMITED COMPENSATION SCHEMES WERE NORMALLY SUBSUMED IN HMOCS GENERAL COMPENSATION SCHEMES IN OTHER TERRITORIES. A GENERAL COMPENSATION SCHEME FOR THE LOSS OF THE SECRETARY OF STATE'S PROTECTION WOULD BE CONSIDERED TO COVER ANY LOSS OF CAREER PROSPECTS ASSOCIATED WITH A CHANGE OF SOVEREIGNTY. IN ADDITION, OUR LIMITED COMPENSATION SCHEME HAS PROVISIONS FOR HMOCS OFFICERS, AND A FEW LOCAL OFFICERS, TO RETIRE ON SENSITIVE SERVICE GROUNDS WHERE IT WOULD BE UNREASONABLE TO EXPECT THEM TO CONTINUE IN SERVICE AFTER 1997 UNDER CHINESE SOVEREIGNTY. CLEARLY THESE FEATURES WOULD NOT BE APPLICABLE AFTER 1997. IT WOULD OF COURSE BE OPEN TO THE SARG TO INTRODUCE A COMPENSATION SCHEME TO COVER FOREIGN NATIONALS SUPERSEDED FOR PROMOTION, BUT THERE MUST BE CONSIDERABLE DOUBT ABOUT WHETHER THEY WILL DO SO.

(B) DELAYED ACCESS TO INCENTIVE PAYMENTS WAS DISCUSSED IN AUGUST 1990, AS YOU SAY. WE SAW IT AS A POSSIBLE WAY TO ASSUAGE CHINESE FEARS OF AN EXODUS AND TO RECOGNISE CHINESE SENSITIVITIES ABOUT PAYMENTS BY HMG TO OFFICERS SERVING THE SARG. THE CHINESE HAVE SINCE BEEN TOLD THAT COMPENSATION WILL BE PAID FOR THE LOSS OF THE SECRETARY OF STATE'S PROTECTION IN 1997 AND THAT PAYMENTS WILL BE PHASED TO ENCOURAGE CONTINUITY OF SERVICE. ALTHOUGH THEY HAVE NOT RESPONDED YET, OUR ASSESSMENT IS THAT THIS ASPECT OF THE PROPOSAL WILL NOT BE A STICKING POINT. PEKING TELNO 470 (PARA 1) ON THIS SUBJECT OF TODAY'S DATE REINFORCES THIS ASSESSMENT. ON THE OTHER HAND, THE CURRENT MOOD IN THE HMOCS ASSOCIATION IS SUCH THAT ANY SUGGESTION OF DEFERRING PAYMENTS WOULD RAISE

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