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ADJUSTMENT TO LO A, THERE SHALL BE REVIEW OF THIS ASPECT OF THE OPERATION OF THE INFLATOR INDICES WITH THE AIM OF REDUCING THE HONG KONG GOVERNMENT LIABILITY: AND IF COSTS IN HONG KONG RISE AT A RATE ABOVE THE RATE OF INCREASE OF BASIC UK PAY AND ALLOWANCES LEADING TO AN UPWARDS ADJUSTMENT OF LO A

THERE SHALL BE SIMILAR REVIEW WITH THE AIM OF LIMITING THE COST TO THE UNITED KINGDOM GOVERNMENT) OR UNQUOTE

4. YOUR PARA 10: WE HAVE NOTED THE OMISSION.

ENDS.

CALLAGHAN

FILES

HKIOD (3)

DEF D

SWPD

PS

PS/LORD GORONWY-ROBERTS PS/PUS

MR MALE

MR THOMSON

COPIES TO

MR ANDREW AUS(GS)MOD MR WARD DS6 MOD

MR HANFORD TREASURY

MR BRYERS CABINET OFFICE MR AGGLETON FSA DOE

3

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