TNAG-2426-FCO40-3528-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 63

CONFIDENTIAL

B.

COMPENSATION

Option A (original proposal)

-use of half traditional factors to calculate

notional total

-20% payable to all in 1997

-additional 10% payable for each year's service

under SARG up to 2005

-no cap

COST: up to £ 34 37 m

Option B: (HMOCS proposal)

-use of traditional factors

-100% payable in lump sum to all in 1997

-no cap

COST: £ 70 75 m

Option C:

-use of full traditional factors to calculate total

for all serving in 1997

-payment phased in 5 or 6 equal instalments (first payment 20% of total) with interest at 5% pa for those who stay on

-cap of £120,000

COST:

£ 50

-

54 m

CONFIDENTIAL