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ADVANDR
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"He LEPAD
Hell yong Kong reipt Mr. Wilford 3
TO FOREIGN AND COMMONWEALTH OFFICE
IMMEDIATE HONG KONG
TELEGRAM NUMBER 78
3 FEBRUARY 1976
CONFIDENTIAL
PERSONAL
YOUR TELEGRAMS 52 AND 67.
OVERSEAS PENSIONS POLICY.
Advisory
3
(Lux)
RECEIVED IN
REGISTRY No.51
-S/EB 1970
AKK 18
1841
WITH REGARD TO THE PROPOSALS IN PARAGRAPH 2, (A) AND (B) DO NOT
DIRECTLY CONCERN THIS GOVERNMENT. IT IS CONSIDERED HOWEVER THAT
THE ADOPTION OF (B) AND THE EXCLUSION OF (C) WOULD BE ONLY TOO READILY MISUNDERSTOOD BY THE SERVICE HERE, THE SIGNIFICANCE OF THE
Exec/we CHANGE FROM AN EXECUTIVE TO AN ADVISORY PUBLIC SERVICES COMMISSION
BEING A PURELY ARBITRARY YARDSTICK FOR DETERMINING THE PART OF
CONSTITUTIONAL ADVANCE AT WHICH A COMPENSATION SCHEME BECOMES
APPROPRIATE.
2. TWO TECHNICAL PROBLEMS AT LEAST WOULD ARISE:
(A) LIABILITY TO U.K. TAX. AT PRESENT PENSIONERS PAY U.K. TAX ONLY ON PENSIONS REMITTED TO THE U.K. AND THEN ONLY IF RESIDENT.
ALL PENSIONERS PAY HONG KONG TAX.
(B) CURRENCY. APART FROM PENSIONS PAYABLE TO CERTAIN OFFICERS WHO HAVE RETAINED AN OPTION TO STERLING OR HONG KONG DOLLAR PENSIONS, ALL PENSIONS ARE PAYABLE IN HONG KONG DOLLARS.
3. THE ASSOCIATION OF EUROPEAN CIVIL SERVANTS HOWEVER WOULD PROBABLY PRESS THE MATTER OF THE U.K. ACCEPTING THE LIABILITY OR GUARANTEEING THE SECURITY OF H.K. PENSIONS FOR THE FUTURE. THEY HAVE RAISED THIS FROM TIME TO TIME IN THE PAST AND IT IS KNOWN THAT THEY WILL RAISE THIS WITH THE HMOCS ADVISOR WHEN HE VISITS HONG KONG, WHILE INFORMAL ASSURANCES HAVE BEEN GIVEN IN THE PAST, AND MOST OFFICERS WOULD PLACE TRUST IN HMG IF THE SOURCE OF HONG KONG PENSIONS WAS CUT OFF AT SOME FUTURE DATE, THE AECS WOULD FEEL THEMSELVES BOUND TO PRESS FOR SOME FORMAL GUARANTEE OF SECURITY OF HONG KONG PENSIONS SHOULD THESE CIRCUMSTANCES ARISE.