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026 0 MDHIAN 4908
IMPLICATIONS AND WOULD PROBABLY SAY THAT IF HMG WISHED TO DISCHARGE ITS OBLIGATIONS TO ITS OWN PEOPLE IN THIS WAY THE COST SHOULD BE BORNE BY HMG, AND NOT BY THE HONG KONG TAXPAYER. THE RELATIVELY SMALL AMOUNT OF MONEY INVOLVED WOULD MATTER LESS TO THEM THAN THE PRINCIPLE. IF WE ATTEMPTED TO IMPLEMENT ONE OF THE SCHEMES WITHOUT THEIR AGREEMENT THEY WOULD PROBABLY REPUDIATE ANY OBLIGATION
DERIVING FROM IT ON BEHALF OF THE SARG.
5.
IT IS TRUE THAT THE CHINESE HAVE COMPLAINED ABOUT THE SLOW PACE OF LOCALISATION IN SOME PARTS OF THE CIVIL SERVICE (EG THE LEGAL DEPARTMENT). I SUSPECT HOWEVER THAT THEIR CONCERN IS LIMITED TO THOSE FEW AREAS OF GOVERNMENT WHICH ARE POLITICALLY SENSITIVE, WHERE THEY SUSPECT THAT EXPATRIATES MAY TAKE AN UNHELPFUL ATTITUDE TO, FOR EXAMPLE, HUMAN RIGHTS ISSUES. I DO NOT BELIEVE STEPPING UP LOCALISATION ACROSS THE BOARD WOULD APPEAL TO THEM, FOR THE REASONS GIVEN IN PARA 2 ABOVE. IF THEY DO CHOOSE TO PURSUE A MORE RADICAL LOCALISATION POLICY AFTER 1997 THEY WILL REGARD IT AS A MATTER FOR THEM AND THEY WILL DO IT ON THEIR TERMS NOT OURS.
6.
I AM NOT SURE I FOLLOW THE REASONING IN PARA 9 OF YOUR TUR ABOUT READING THE RELEVANT PART OF THE JD AS ENVISAGING EARLY RETIREMENT WITH PENSION ON OR AFTER 1997. IT WOULD BE DIFFICULT TO MAINTAIN NOW THAT WE HAD SOUGHT THESE PROVISIONS WITH ANY OTHER OBJECTIVE THAN THAT OF PROMOTING CONTINUITY IN THE CIVIL SERVICE OVER THE TRANSITION.
7. IT IS ALSO WORTH BEARING IN MIND WHAT I HAVE ALREADY TOLD GUO ABOUT THE PROPOSED SCHEME. I HAVE SAID ON INSTRUCTIONS (MY TELNO 733) THAT THE HKG WILL NOT BE INVOLVED IN THE FUNDING OF THE COMPENSATION SCHEME IN ANY WAY AND THAT THERE WILL BE NO INDUCEMENT OR INCENTIVE FOR OFFICERS TO RETIRE EARLY OR OTHERWISE LEAVE THE SERVICE BEFORE 1997. INDEED, THE OPPOSITE WOULD BE TRUE''.
8 =
OF THE OPTIONS SET OUT IN YOUR TELEGRAM, I SEE A PRESENTATIONAL ADVANTAGE IN (D) WHICH FALLS MORE EASILY INTO THE CONTEXT OF LOCALISATION, TO WHICH THE CHINESE COULD NOT SO EASILY OBJECT. HOWEVER, THIS IS OFFSET BY THE FACT THAT IT IS THE MOST EXPENSIVE OPTION. OPTIONS (A) AND (B) WOULD APPEAR TO LEAVE THE DECISION ABOUT WHETHER TO ALLOW EARLY RETIREMENT WITH PENSION TO THE DISCRETION OF THE GOVERNOR OR SCS. THE QUESTION WOULD ARISE AS TO WHETHER PERMISSION WOULD BE GIVEN IN EVERY CASE, AS OF RIGHT, OR WHETHER EACH CASE WOULD BE CONSIDERED ON ITS MERITS. THE CHINESE MIGHT BE REASSURED BY THE EXISTENCE OF THIS ELEMENT OR DISCRETION AND NON-AUTOMATICITY. OPTION (C) WOULD GIVE ALL HMOCS THIS RIGHT,
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