CONFIDENTIAL
much depends on how the Chinese authorities will regard British citizens of Hong Kong Chinese origin. Provided that the Chinese do not regard such persons as PRC nationals, they will enjoy all the benefits of being a British citizen,
including the right of consular access. However if the Chinese do regard such persons as PRC nationals, then, when in Hong Kong, British consular officials would not
normally have the right of access to them.
Q11
Will payments be made pro rata if I choose to retire within the year?
A11 That would complicate calculations but we will consider
this.
Q12 Why are you using 1991/92 salaries and exchange rate?
A12 If we are to settle and announce a scheme now, we need
reasonable certainty now of the likely cost in UK terms.
The Treasury can budget for increases in the UK RPI.
Changes in Hong Kong public service salary fall within the
authority of the HKG. On present predictions of likely
inflation rates in the UK and Hong Kong over the next five
years, the calculation proposed is likely to involve less
cost to the UK tax-payer than taking 1997 salaries. (It
would be possible not to settle the scheme until nearer
1997, but HMOCS officers have asked for it to be settled
now.)
January 1992 salaries were taken as the reference point, as this was when Ministers decided in principle to open early consultations on our outline proposal. The average exchange
rate for the previous 12 months was taken as being fairer
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