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9. WE ARE UNCLEAR WHAT EMPHASIS THE CHINESE REALLY PUT ON THEIR PUBLIC LINE OF CIVIL SERVICE CONTINUITY THROUGH 1997 (AND WHETHER THEY MEAN MAXIMUM LONG-TERM CONTINUITY OR JUST FOR A 3-5 YEAR TRANSITION PERIOD) AND WHAT ON SHOWING THAT THE SARG MARKS A DEFINITE BREAK WITH THE PREVIOUS COLONIAL GOVERNMENT. IF THE CHINESE ARE REALLY CONCERNED ABOUT CONTINUITY WE MAY HAVE SOME LEVERAGE TO BRING THEM TO OFFER MORE REASSURANCE TO THE CIVIL SERVICE AND MAKE CONTINUING SERVICE MORE ATTRACTIVE. HKG'S PRESENT POLICY IS TO TRY (BY EARLY EXPATRIATE RETIREMENTS ETC) TO MAXIMISE THE NUMBER OF LOCAL OFFICERS OCCUPYING SECRETARY AND DEPUTY SECRETARY POSTS IN 1997. BUT IN THEORY AT LEAST THIS IS A MATTER OF CHOICE RATHER THAN OBLIGATION. (THE JD COULD ANYWAY
BE READ AS ALLOWING EXPATRIATES SERVING IN THOSE JOBS ON 30 JUNE 1997 TO CONTINUE UNTIL THEIR RETIREMENT, WHEN OF COURSE NEW APPOINTEES WOULD HAVE TO BE LOCAL. EVEN IF EXPATRIATES COULD NOT/NOT CONTINUE TO OCCUPY THOSE POSTS, BY JD72 THEY COULD GO ON DRAWING THE SAME PAY ETC. IF THE CHINESE WANT CONTINUITY, THEY NEED OUR COOPERATION, AND OUR OBJECTIVE OF A SMOOTH TRANSITION DOES NOT OBLIGE US TO GIVE IT UNCONDITIONALLY.
10.
ON THE OTHER HAND THE HMOCS REPRESENTATIVES TOLD US THAT NO-ONE IN HONG KONG NOW EXPECTED THAT THE SARG WOULD WANT TO EMPLOY SIGNIFICANT NUMBERS OF EXPATRIATES FOR LONG AFTER 1997. YOUR TELNO 563 (PARA 4) OFFERS SOME SUPPORT FOR THIS VIEW. WE ALSO ASSUME IT WOULD BE DIFFICULT FOR THE CHINESE TO SEEM TO
OPPOSE LOCALISATION AND IMPLY THAT LOCALS ARE NOT UP THE JOBS. IF SO, IT WOULD ALSO BE DIFFICULT FOR THEM TO SAY THAT DESPITE JD 77/78 AND BL 103 THE SARG SHOULD NOT COMPENSATE OFFICERS
WHOSE CAREER PROSPECTS ARE IMPAIRED BY A LOCALISATION POLICY: HOWEVER GRANTING ALL HMOCS OFFICERS, OR ALL EXPATRIATE OFFICERS, AN INDEFINITE RIGHT TO RETIRE WITH IMMEDIATE PENSION WOULD BE
MORE SENSITIVE. ONE WAY OF HANDLING THIS MIGHT BE TO ARRANGE FOR HMOCS OFFICERS TO HAVE THE OPTION OF RETIRING BEFORE 1 JULY 1997 AND THEN BEING RE-ENGAGED ON CONTRACT TERMS (IE RENEWABLE
2-3 YEAR CONTRACTS): THIS MIGHT BE ATTRACTIVE TO THE CHINESE AND
THE SARG AS INCREASING THEIR FLEXIBILITY. (HKG'S POLICY IS ALREADY TO GIVE PREFERENCE TO LOCAL OFFICERS IN CONSIDERING WHETHER TO RENEW A CONTRACT).
11.
GIVEN PRESENT PROBLEMS AND SUSPICIONS, THE TIME IS PROBABLY NOT YET RIGHT FOR SUCH A DISCUSSION WITH THE CHINESE, BUT CIVIL SERVICE ISSUES WILL NEED TO BE DISCUSSED SOONER RATHER THAN LATER. DEPENDING ON MINISTERS' DECISIONS, WE MAY ALSO WANT TO TELL HMOCS OFFICERS THAT WE INTEND TO DISCUSS POST-1997
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