TNAG-2685-FCO40-3886-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 128

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HMOCS Arrangements

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17 December 1992

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At the OPD (K) meeting on 18 November, I mentioned the importance of securing an early and honourable settlement of arrangements for Hong Kong members of Her Majesty's Overseas Civil Service (HMOCS). You said that discussions should continue between the Foreign and Commonwealth Secretary and the Chief Secretary with a view to reaching agreement as soon as possible.

Douglas Hurd wrote to Michael Portillo on 18 November, seeking his agreement to a package of proposals including an equitable compensation scheme and the provision of Sterling pension safeguards. The proposed compensation scheme followed the lines of traditional compensation arrangements in other former dependent territories, but included a lower compensation cap. The sterling pension safeguard rate proposed was at HK$16:£1. These proposals represent, in my view, the minimum on which further consultations can take place with the Hong Kong HMOCS Association.

Since 18 November there has been no formal response, although Treasury officials have continued to raise queries about the aims and objectives of the compensation scheme and have suggested a sterling pension safeguard at a rate of HK$22:1 or even HK$Z6: £1, on the basis apparently of a comparison with UK pay and pension levels. This is totally unacceptable. The compensation scheme is already less generous than those in other former dependent territories. There is no

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