CONFIDENTIAL

d)

of

Question of HMG taking over pension entitlements

HMOCS officers in Hong Kong should be reviewed in

1990;

e) HMOCS members who remain in pensionable service in

Hong Kong after 1997

1997 should relinquish their HMOCS

status: question of whether and how the benefits of

such status should be retained for pensionable

service after 1997 should be considered in 1990s.

3.

The Hong Kong Government have been informed of these decisions. However, they have yet to consult EXCO on the

details of the arrangements, and

are concerned that

points (b) and (c) are potentially divisive in terms of

the different treatment likely to be accorded to local

officers in Hong Kong. As a result, no public commitment

has yet been made by HMG on (c), and we have answered an enquiry by the Overseas Pensioners' Association on (b)

only with the line that HMG will be discussing the

possibility

sterling safeguards with the Hong Kong

Government.

4.

of

The Limited Compensation Scheme is now under details have yet to be worked

discussion with the HKG but

out.

CONFIDENTIAL

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