CONFIDENTIAL
3.
DEP
Many officers, particularly but not exclusively in the police force, say they see real difficulty 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 and to continuing human rights
· violations in China). There is a strong tone of disillusionment and bitterness with Government policy: many officers use strong language about their sense of betrayal by HMG. Some express doubts about the prospects that the Joint Declaration will be honoured or implemented in full: fears of interference by Peking are evident.
4.
The general argument is that Hong Kong officers should be entitled to the full traditional compensation and sterling safeguards package provided in the case of other dependent territories; and that insofar as Hong Kong's circumstances are special, they are less favourable for HMOCS officers than those of other territories: Hong Kong is not proceeding to independence by an act of self-determination; the territory will not remain under the Crown or within the Commonwealth; it would therefore be unreasonable for HMG to withhold compensation from those officers who feel unable to serve a communist regime with a deplorable human rights record etc.
5.
Nonetheless we see no need to review the substance of our proposal ahead of the face-to-face consultations with the Committee of the HMOCS Association in Hong Kong next week. We have agreed in principle to begin these on 7 May: David Fish and Nigel Cox will be travelling out overnight on 5/6 May. However we have judged in desirable to make clear to the Committee beforehand that our team will not be bringing any proposal in respect of early retirement with immediate payment of pension or any news on the subject of sterling safeguards (copy of letter enclosed). It is possible that the Committee may decline to proceed with the consultations on this basis, but we think this unlikely. any case if there is to be a breakdown on these points it is better that it happens before our team go to Hong Kong rather than within a few minutes of their starting consultations there.
In
6. We intend that the team should begin by explaining why we have judged that a traditional compensation scheme would not be be appropriate in Hong Kong's case. I enclose their draft speaking note on this point. Then, to try to get the consultations to focus on the details of our proposal, they will suggest, as a clarification of it, that the sort of phasing period we might envisage would be equal payments of 10% in each of 10 years. They would invite the HMOCS Association to expand on the outstanding questions in paragraph 8 of their letter of comment; and they would respond to some of the other points made by HMOCS officers. In the light of the Committee's considered comments on this proposal and further discussion, the team will aim to table on 9 May the enclosed outline proposal (envisaging a first payment of 20% and 8 instalments of 10% thereafter. The team will remain in Hong Kong for an extra day to receive any
an
ASHAJC
CONFIDENTIAL
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