TNAG-2421-FCO40-3523-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 7

* 23-APR-1992

10:28

C.S.B. (3) 8685069

+852 524 6164

P.05

IN CONFIDENCE

3

afforded

the opportunity

to

do SO

with honour and with adequate compensation. Yet what is

now being offered is a general scheme manifestly less favourable than the provisions of the limited scheme for officers affected by constitutional change and in

change and in no way comparable to what was provided by way of general compensation elsewhere.

1.

HMOCS officers are rightly proud and supportive of the position that HMG has taken over the years in opposing communist and other totalitarian regimes. For HMG to leave such officers with no option in 1997 but to work under communist Chinese sovereignty or to resign with inadequate compensation for the loss of their careers, would amount to a repudiation and rejection of their allegiance and loyalty unprecedented in the history of British service. The situation clearly calls for a general compensation scheme which on overall terms is no less favourable than the limited scheme and adequately reflects the seriousness with which the withdrawal of British sovereignty is regarded, particularly by comparison with the very real, but somewhat lesser, concerns arising from supercession for promotion

before 1997.

8.

We have limited our response at this stage to the broad issues, but there are other more detailed matters that we will wish to raise in the consultations. These include, for example, determining the date on which compensation first becomes payable, the need to recognise the special position of the judiciary and the need to devise an exchange mechanism that would operate neutrally and would not serve to reduce the compensation payable

payable as is

is likely to be the case with the mechanism proposed in the outline general scheme. There is also of course the parallel issue of sterling guarantees for pensions that we would expect to go hand in hand with compensation, as occurred elsewhere, and that we will wish to discuss at the same time as the compensation scheme.

/9.