TNAG-2421-FCO40-3523-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 55

IN CONFIDENCE

2

3.

The

Joint

Declaration and the Basic Law contain

provision for continuity of service with pay, conditions

and pensions on terms no less favourable than before.

Nonetheless HMG accept that HMOCS officers in Hong Kong are

also entitled to compensation for the loss of the Secretary

of State's protection. The HKG has introduced its own

scheme

for the payment of compensation for certain

pensionable officers. This paper sets out HMG's proposals for compensation and incentive payments for HMOCS officers

in general.

4.

In the special circumstances of Hong Kong,

proposed scheme is as follows :

(a)

A calculation of the total sum for which an

officer would be provisionally eligible under sub paragraphs (b) and (c) below will be made

using:

the tables set out in the HKG limited

compensation

for officers

scheme

superseded for promotion in order to

determine the relevant factor to be

applied in relation to the officer

concerned; and

the "notional sterling equivalent" for the

salary of the rank point in which the

officer is serving on 30 June 1997 (see

paragraph 6 below).

IN CONFIDENCE