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CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 678
OF 21120OZ APRIL 92
CONFIDENTIAL
HKA 233/1
INFO PRIORITY UKREP JLG HONG KONG, PEKING
254
116316
MDHOAN 3205
TOP COPY Q DIST?
PERSONAL FOR GOVENOR FROM RICKETTS, HKD HMOCS: PENSIONS QUESTIONS
A
THE GENERAL ISSUE
1.
6242
PARA 3(A) OF YOUR TELNO 1043 IS NOT UNEXPECTED, BUT WE NEED TO BE CLEAR ABOUT THE REASONS WHY THE OPENING STATEMENT IGNORES THE ISSUE AND WHY IT IS NOT (NOT) OUR PRESENT INTENTION TO PROPOSE A RIGHT TO RETIREMENT ON OR SUBSEQUENT TO A CHANGE OF SOVEREIGNTY WITH IMMEDIATE PENSION. SUCH A RIGHT WOULD NEED TO HAVE EFFECT IN HONG KONG LAW, EITHER:
A) BY A SPECIFIC NEW ENACTMENT OR BY A DIRECT AMENDMENT TO
CAPS 89 AND 99: OR
B) IN A SCHEME APPROVED BY THE GOVERNOR IN COUNCIL UNDER SECTION 6A OF CAP 89 AND SECTION 13 OF CAP 99.
2.
THERE HAS BEEN AN ASSUMPTION THAT YOU WOULD NOT WISH TO ACT AS IN PARAGRAPH 1 (A) ABOVE, OR TO INTRODUCE A SCHEME OF YOUR OWN AS IN PARAGRAPH 1(B) ABOVE, TO CONFER SUCH A RIGHT OF RETIREMENT FOR MEMBERS OF HMOCS WITH AN IMMEDIATE PENSION, BUT WE DO NOT THINK THAT WE HAVE HITHERTO PUT THE POINT DIRECTLY TO YOU. WOULD YOU BE PREPARED TO ACT AS IN PARAGRAPH 1 (A) OR (B)?
3"
A POSSIBLE VARIATION ON PARAGRAPH 1(B) WOULD BE FOR A PROVISION TO THIS EFFECT TO BE MADE AS PART OF THE UK COMPENSATION/INCENTIVE SCHEME, OR EVEN AS A SEPARATE SCHEME CONFINED TO THIS ASPECT, WHICH WOULD FORM A SCHEDULE TO THE UK COMPENSATION ETC ORDER IN COUNCIL. THE ORDER IN COUNCIL WOULD NOT SURVIVE 1997 IN HONG KONG BY REASON OF ARTICLES 8 AND 160 OF THE BASIC LAW, SO THAT RELIANCE SOLELY ON AN ORDER IN COUNCIL WOULD NOT ENSURE CONTINUED PAYMENT OF PENSION AFTER 1997 EVEN TO THOSE WHO HAD RETIRED IN ACCORDANCE WITH ITS PROVISIONS BEFORE THE CHANGE OF SOVEREIGNTY. BUT COULD NOT THE GOVERNOR IN COUNCIL APPROVE, SUCH A SEPARATE SCHEME UNDER CAPS 89 AND 99?
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PAGE CONFIDENTIAL
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