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IN CONFIDENCE
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17 the ircumstances of Hong Kong, if the payment of such compensation Were CO be made
any way conditional upon continuation of service under non-British sovereignty beyond 1297. rong rans is not going to ce an independent country within the British Commonwealth, but rather an integral part of she Peoples Republic of China under Full Chinese sovereignty. Whilst there can be no objection to HMG offering additional inducements to HMOCS officers agreeing to continue in service of their own free-will beyond 1997, such elements of incentive should not be offered at the expense of providing fair compensation to those reasonably exercising what should be the right to retire in 1997: Moreover, whether to remain service beyond 1297 is a matter officers should be free decide without being driven by any
driven by any element of co-ercion or penalty.
5.
third fundamental point Of principle As establish a manifestly fair and equitable
compensation.
level of The limited Compensation scheme currently applied in Hong Kong is generally recognised as providing acceptable levels of compensation for certain eventualities arising from, but occurring before, the constitutional change due to take place in 1997. As such it should provide a benchmark for general compensation scheme. The apparent this fact by HMG in the opening statement
recognition
of
be welcomed, but regrettably the arrangements outlined for the general scheme appear to fall far short of those in the limited scheme. In our view the compensation payable should De no less than that payable under che limited compensation scheme to officers required to retire for reasons of constitutional change and should
should be accompanied by the right to retire with earned
earned pension. As under the limited compensation 3 cheme there should also be provision for enhanced pension commutation for officers below the normal retirement age.
6.
For many
many officers what will occur in 1997 is a more devastating and threatening eventuality than being superseded for promotion before 1997. The fact that they are British subjects in a British service is the very basis their being in Hong Kong. Many will feel compelled to leave when Britain does and have every the past record in other territories,
on
reason =0 expect, that they will be
/afforded
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