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OF AVOIDING THE SORT OF ACCUSATION REFERRED TO IN PARAGRAPH 15 OF THE DRAFT MEMORANDUM). IN THE LONGER TERM THIS CONTRIBUTION COULD THEN BE EXPANDED AS PART OF THE PROCESS OF INCREASING THE SCALE
AND RANGE OF BENEFITS.
4. WE NOTE THAT THE PAPER SEEMS TO FAVOUR THE OMISSION AT THIS STAGE OF RETIREMENT AND, POSSIBLY, DEATH BENEFITS. WE ASSUME THAT THIS IS PRIMARILY BECAUSE OF THE RISK THAT THE INCLUSION OF THESE BENEFITS IN A COMPULSORY SCHEME MIGHT SET OFF A PREMATURE PUBLIC DEBATE ABOUT THE FUTURE OF HONG KONG (YOUR TELNO 81 TO PEKING REFERS). WE AGREE THAT THERE MUST BE SOME RISK, BUT THE INCLUSION. OF RETIREMENT AND DEATH BENEFITS IN THE GREEN PAPER DID NOT, SO FAR AS WE ARE AWARE, GIVE RISE TO AWKWARD QUESTIONS WHICH COULD NOT BE
HANDLED: AND THE OMISSION OF THESE BENEFITS NOW COULD WELL BE
INTERPRETED AS A SIGN THAT GOVERNMENT LACKED CONFIDENCE IN THE
FUTURE. IT COULD ALSO DIMINISH PUBLIC SUPPORT FOR THE SCHEME (THE SPECIAL OPINION SURVEY SEEMED TO INDICATE THAT EMPLOYEES ATTACHED IMPORTANCE TO THESE PARTICULAR BENEFITS). ON BALANCE WE
CONSIDER THAT THE ADVANTAGES OF INCLUDING RETIREMENT AND DEATH BENEFITS GREATLY OUTWEIGH THE POSSIBLE POLITICAL OBJECTIONS.
5. WE HOPE YOU CAN AMEND THE MEMORANDUM TO TAKE ACCOUNT OF THESE POINTS. WE LOOK FORWARD TO SEEING THE DRAFT WHITE PAPER IN DUE
COURSE.
OWEN
FILES
H.KTGD.
OLA
PS/LORD GORONWY ROBERTS.
MR CORTAZZI
MR MURRAY
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