SECRET
FM FCO
TO IMMEDIATE HONG KONG
TELNO 965
OF 151422Z NOVEMBER 93
SECRET
HUA 233/1
288
055650
MDHOAN 0966
1-NUV 1993
fo
(if not ready)
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
YR TELNO 1526 : HER MAJESTYS OVERSEAS CIVIL SERVANTS
HMOCS
PERSONAL FOR DINHAM FROM RICKETTS, HKD
1.
As you know, oral agreement has been reached between the FCO and the Treasury on a package of benefits for HMOCS. Subject to an exchange of letters between Mr Portillo and the Secretary of State confirming this agreement, this package will comprise:
- A compensation scheme at a maximum cost of 39 million pounds. There will be a cap on payments of 120,000 pounds at January 1992 prices and payments will be phased over 5 years. Compensation factors will on average be about 20 percent lower than those in the HKG's limited compensation scheme.
- A sterling pension safeguard with the safeguard rate set at Hong Kong dollar 21:1 pound.
Amendment to the SPOS Regulations, as proposed by the ODA.
WAY FORWARD
2. We want HMOCS Association members to be able to judge the proposed package on the basis of the full details of the schemes and an explanation of the significance of the SPOS amendment. Without this information, they are likely to focus on the rate for the sterling pension safeguard which may provoke a knee-jerk (and public) negative reaction. We would therefore be grateful if, for the time being, you would not/not reveal the headlines in paragraph 1 above to the Association.
3. We intend to recommend that, once agreement is confirmed in writing, Mr Goodlad should write to the Chairman of the HMOCSA advising that decisions have been taken on a package which will contain all four key elements requested by the Association:
ie a compensation scheme, early retirement with immediate payment of pension, a pension safeguard scheme, and the SPOS amendment.
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