Chief Secretary
HONG KONG: HMOCS PENSIONS
CONFIDENTIAL
FROM:
Secretary of State
DATE:
24 April 1992
1. David Mellor and I corresponded recently about how we
should fulfil our obligations towards the several hundred
British officials and police officers in Hong Kong who at
the change of sovereignty on 1 July 1997 will cease to be
members of Her Majesty's Overseas Civil Service (HMOCs).
This matter has been under discussion since the negotiation
of the Joint Declaration in 1984, and the Governor has
recently advised me that unless we can soon announce
satisfactory arrangements, in line with those made in the other dependent territories, we risk losing many of these
officers well before 1997, jeopardising our ability to govern Hong Kong effectively up to 1997 and damaging the prospects for a smooth transition. I am sorry to trouble you with this problem so early in the life of the new government, but it is important that we should resolve it before the new Governor takes up his position and, if
possible, before 30 June, the date by when the officers
concerned have to opt for pensionable terms or between new and old pension schemes.
2. Last August we proposed a package solution, whereby HMG
would fund a compensation/incentive scheme, to compensate
the officers for the loss of my protection and to a certain extent of career prospects, and a safeguard for the sterling value of their Hong Kong pensions. We also proposed that we
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CONFIDENTIAL
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