TNAG-2687-FCO40-3889-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 148

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MDHIAN 165

AT ABOUT 12 HONG KONG DOLLARS: ONE POUND STERLING. THE PAPER COULD

THEN GO ON TO ELABORATE ON THE FCO PROPOSALS AND EXPLAIN WHY THEY

ALREADY REPRESENT A SIGNIFICANT COMPROMISE WHICH TAKES INTO

ACCOUNT THE INTEREST OF UK TAXPAYERS. THE ADVANTAGE OF SUCH AN APPROACH WOULD BE TO PRESENT THE TWO EXTREMES OF THE TRADITIONAL

HMOCS PRACTICE AND THE TREASURY POSITION WITH THE FCO PROPOSAL AS THE COMPROMISE SOLUTION. THE PRESENT PAPER IMPLIES THAT IS IS REASONABLE TO TAKE UK SALARY AND PENSION RELATIVITIES INTO ACCOUNT AND THAT ONLY THE TREASURY PROPOSAL DOES THIS. THIS IS OF COURSE FAR FROM THE TRUE POSITION. THE FCO PROPOSAL IS ALREADY AT A 35 PERCENT DISCOUNT ON STANDARD HMOCS ARRANGEMENTS.

5. MY CSB EXPERTS HAVE SOME POINTS OF DETAIL ON THE CABINET PAPER. THE ARGUMENTS IN PARAGRAPH 10 COULD BE BEEFED-UP. IN PARTICULAR IT MIGHT BE ADVISABLE TO STRESS THAT INSOFAR AS HMOCS OFFICERS IN THE ADMINISTRATIVE SERVICE ARE CONCERNED, THE JOINT DECLARATION RESTRICTION ON SENIOR POSTS HAS A VERY REAL EFFECT ON CAREER PROSPECTS. ADDITIONALLY IT WOULD BE ADVISABLE TO MENTION THAT ALL HMOCS OFFICERS IN HONG KONG HAVE AN EXPECTATION, BASED

ON PAST PRACTICE AND PRECEDENT AND BEARING IN MIND THAT SOME HAVE SERVED IN OTHER HMOCS TERRITORIES, THAT ARRANGEMENTS WOULD BE INTRODUCED IN HONG KONG SIMILAR TO THOSE INTRODUCED ELSEWHERE ON TRANSFER OF SOVEREIGNTY. THIS EXPECTATION HAS DONE MUCH TO RETAIN HMOCS OFFICERS OVER THE LAST TEN YEARS.

COMPENSATION SCHEME.

6. I DO NOT BELIEVE THAT IT WOULD BE LOGICAL OR DEFENSIBLE TO AGREE TO FULL COMPENSATION FACTORS FOR THOSE WHO LEAVE IN 1997 WITH HALF FACTORS FOR THOSE WHO STAY ON. THE FACT IS THAT ALL HMOCS OFFICERS WILL LOSE THE PROTECTION OF THE SECRETARY OF STATE UPON THE TRANSFER OF SOVEREIGNTY IN 1997. SOME MAY HAVE A LIMITED CAREER AFTER 1997 BUT THERE CAN BE NO GUARANTEE, AND THEY WILL HAVE NO RECOURSE IF THIS IS NOT IN FACT THE CASE. SUCH AN ARTIFICIAL DISTRIBUTION MIGHT WELL ENCOURAGE MORE OFFICERS TO LEAVE IN 1997.

7. THE ARTIFICIALLY LOW CAP OF POUNDS 120,000 AT 1992 PRICES IS ALREADY A SIGNIFICANT DISCOUNT. THE HMOCS ASSOCIATION WILL ARGUE STRONGLY TO INCREASE THE CAP. IN OUR ASSESSMENT THEY WILL NOT ACCEPT ANYTHING LESS THAN FULL FACTORS AND WILL NOT AGREE TO A DISTINCTION BEING DRAWN BETWEEN THOSE WHO GO AND THOSE WHO STAY.