TNAG-2685-FCO40-3886-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 34

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CONFIDENTIAL

Thank

you.

HONG KONG: HER MAJESTY'S (VERSEAS CIVIL SERVANTS

مه

/سه

Pin Bilateral

23/2

Details

Chris Patten has written to you twice.) Long-running argument with Treasury. Needs to be resolved. complex, but political issues clear.

Affects 700 expatriate civil servants and (crucially) police

officers. There are White Paper obligations and practice over

30 years for package offered to such officers when territory

in which they served ceased to be British.

- HMG have in all cases arranged two elements:

compensation

for loss of Crown protection and career prospects; safequard

for sterling value of officers' pensions.

wwww

My proposals for Hong Kong officers are less generous than

previous schemes (given pay rates there, PES climate here).

They are the minimum acceptable to the Governor who feels very

strongly about this. Treasury trying to cheesepare to point

where we could face trouble in House (legislation is needed) proposals unner Rüble with

and possibly judicial review. Treasury proposals

HMOCS Assocint in.

1

On

My proposed compensation scheme will cost £12 million more than the Chief Secretary's proposal spread over six years. the pension safeguard, the theoretical liability looks big

(£250 million). But that would only apply if the HK dollar

became worthless. It would have to fall far below the present rates before HMG paid anything. who need the cured the spos

is which are ine joutunes.

We have a choice between putting an unsatisfactory scheme to the officers concerned (without Governor's endorsement) and then having to retreat from it, or deciding now on a

defensible proposal and sticking to it.

The Governor has enough on his plate without disgruntled

expatriate officers to deal with. Need to get this settled.

-

Have failed to agree with Treasury. A meeting?.........

BRIEFS.HMOCS.NJH

CONFIDENTIAL