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precedent, and indeed no logic, for making any comparison with UK pay levels. Moreover, since the Hong Kong Dollar delinked its pegged rate of HK$16:E1 in 1967, it has never been below HK$15.83:£1. The average over the whole period since delinking is about HK$12:£1, which is also roughly the current rate. The HMOCS Association have suggested a safeguard rate of HK$13.76:£1, as the average rate for 1991, and will argue strongly for this.
So far HMG have had one round of consultations with the Hong Kong HMOCS Association on an outline proposal for a compensation scheme. This took place well before I arrived in Hong Kong. The proposal fell far short of what had been granted to HMOCS officers in other territories, and was naturally not acceptable to the Association. Since then the Association have been assured that HMG is working on a package of proposals including a compensation scheme and Sterling pension protection. They were assured that another round of consultations would take place, first in the summer and then in the autumn. However, despite these assurances, nothing further has happened.
The HMOCS issue has dogged us since 1986. I have enough difficulties over the political situation and over localisation generally, including the need to identify and groom suitable local officers for future principal official posts, without having also to deal with unresolved HMOCS issues and disgruntled expatriate officers quite naturally worried about their future. I need a cadre of HMOCS officers on whom I can rely for the next four years. They have so far been remarkably patient, but this will not last for much longer if no progress is forthcoming.
All I ask is that Hong Kong officers should be given the same arrangements and assurances as provided elsewhere. I could not, in honour, accept any proposals which fall short of this. I am well aware that costs to HMG are involved, but this has to be seen against the background of HMG's historical obligations.
Hong Kong is the last HMOCS territory. With only four years to go before 1997, HMOCS officers need to know now where they stand. I hope that Douglas Hurd's proposals can be agreed and put to the HMOCS Association very soon.
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