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Reference
Mr Stone
HMOCS COMPENSATION
1. I had a useful day of talks with Mr Mike Waters and Miss Christina Tsang (Civil Service Branch) in Hong Kong on 6 April. Most of this covered the compensation scheme; I am recording separately discussion of sterling safeguards.
Opening Statement
2.
We began by covering the minor drafting points on the opening statement, about which you and I spoke by telephone; detailed arrangements for the meeting with Mr Cartland (HMOCS Association), including participation; and subsequent distribution of the statement (since agreed by telegram).
Post-1997 Promotions
3.
Mr Waters agreed with me that an officer's compensation payments should not be affected by any post-1997 promotions. He thought this would be contrary to the logic of compensation on change of sovereignty. As you know, I also
a risk of arguments about whether promotions are being made (as the JD provides) on the same criteria as before the change of sovereignty: if the SARG promote incompetent sycophants, are HMG to give higher payments to them than to able officers, loyal to Hong Kong interests, who are not so promoted? Not limiting the scheme to rank point on 30 June 1997 would also increase the cost.
Contract Officers
4.
Mr Waters said that the HMOCS Association did not want us to bend over backwards to help the contract officers eligible to join HMOCS: they regarded them as carpet-baggers who wanted the best of both worlds and who might queer the pitch for long-standing members of HMOCS. They would be quite happy with the 30 June cut-off date and, by implication, to pre-enrolment service not applying in the calculation of their entitlements. However you have pointed out that for Hong Kong's Limited Compensation Scheme calculations, all service, not just pensionable service, applies. This would increase the contract officers' hostility to any attempt on our part to exclude pre-enrolment service. Given the lack of evidence of precedents for this other DTS, the likely smallness of any cost-saving, and the fact that we did not include the point in our opening statement, I am inclined to drop it. However if the Treasury raise it we may need to
rethink.
Hong Kong Limited Compensation Scheme
5.
Mr Waters agreed that we should try to ensure that no officer received double compensation, ie benefited both from HMG's compensation scheme and the Hong Kong Limited
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