TNAG-2687-FCO40-3889-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 53

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CONFIDENTIAL

From: PF Owen

Cate: 1 May 1993

I. Kerba, ODA

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Sir Robin Butler Mr Lyne

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SECRETARY OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS

CHIEF SECRETARY,

TREASURY

12

HONG KONG: ARRANGEMENTS FOR MEMBERS OF

HER MAJESTY'S OVERSEAS CIVIL SERVICE

1.

The Prime Minister's private secretary asked Sir Robin

Butler to arrange for the Cabinet Office to undertake. work with

officials of the departments concerned to clarify the issues

relevant to a decision on arrangements for compensation and

pensions for Her Majesty's Overseas Civil Servants (HMOCS) in

Hong Kong and recommend an appropriate solution.

C. The attached paper briefly describes the background and sets

out the respective positions of the Treasury and the Foreign

Office.

3. In essence, both departments are agreed that compensation

for loss of prospects and the Foreign Secretary's protection and

safeguarding of the value of pensions should be provided to HMOCS staff following the transfer of Hong Kong. There are relatively

minor differences over the design of the schemes; the main

dispute is over the level of payments. The Treasury note that remuneration in Hong Kong is roughly twice that in the UK and argue that payments which reflect UK levels should be sufficient.

The FCO believe that payments should follow precedent by taking

account of actual remuneration.

CONFIDENTIAL