CONFIDENTIAL
that the next stage should be face-to-face consultations in Hong Kong next week. We have agreed in principle to hold these from 7-9 May, with the possibility of continuing on Sunday 10 May. Mr D Fish, Head of the Overseas Pensions Department, ODA, and I will conduct these consultations. (We had suggested to the Treasury that they might like to arrange for a representative of the Government Actuary's Department to join us, but they see no need for this).
Criticisms
9.
The general tone of comment has been highly critical of our proposals. officers argue that:
(a) the proportion of salary payable in compensation will be 50% less than in other dependent territories;
(b) even this amount will not be automatically paid: in order to receive the full benefits officers will have to
stay for a number of years in the service of the SAR
Government;
(c) any post-1997 incentive payments should be additional to the compensation payments;
(d) despite the clear statement to this effect in the 1960 White Paper, officers are not being offered the right to retire early, at or after the change of sovereignty, with immediate payment of pension;
(e) the question of a sterling safeguard for pensions is unresolved;
(f) it is unclear what will happen if an officer is unfairly
dismissed or if the Joint Declaration is breached; and
(g) after years of delay our proposal is now being rushed
through.
A frequent theme is the difficulty for many officers in transferring their loyalty from the Crown to the SAR, a part of the People's Republic of China under a Communist regime (several letters allude to Tiananmen). There is a
NC1ACC/4
CONFIDENTIAL
No comments yet.
Private notes are available after approval.