As you know, Hong Kong is one of our few remaining dependencies and it is due to be returned to Chinese control in 1997. We have about 700 HMOCS officers currently serving Hong Kong, many of whom will have retired by 1997, either through natural wastage or through the Colony's own limited compensation scheme which, in the main, covers staff employed in sensitive posts. However, a number of overseas officers will still be in post at the date of constitutional change and we must now consider what form of compensation, if any, should be paid to them for loss of the Secretary of State's protection; and indeed for loss of future career prospects.
5. Discussions are still at a very early stage, but it is becoming clear that for political reasons the British Government may have to fund such a scheme. This would, in effect, provide the same kind of benefits as those described above, but payable over a five to eight year period post 1997. With this in mind, I should be grateful if you could confirm by close of play tomorrow that these payments are covered by Section 188, and thus exempt from UK tax.
6. If you need more information or advice, please get in touch by telephone. I am on leave tomorrow but my colleague, Brian Foy (Ext 3265), will be able to answer any questions you may have.
Your
Sencerey
сап жам
ALAN N MCDONALD
Overseas Pensions Department
:
No comments yet.
Private notes are available after approval.