GRS 400
SECRET
FM HONG KONG
TO IMMEDIATE FCO
TELNO 1323
OF 02071OZ APRIL 87
FOR LEEKS FROM SHIPLEY.
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233/20
TOP COPY Q DIST ?
29
YOUR TELNOS 655 AND 841: NEW PENSION SCHEME: DRAFT LEGISLATION.
OUR RESPONSE TO GAD'S AND ODA'S COMMENTS TOGETHER WITH A COPY OF THE
FIRST DRAFT OF THE BILL TO AMEND THE EXISTING PENSION ORDINANCE ARE IN THIS WEEK'S BAG. GRATEFUL FOR ANY COMMENTS YOU MAY HAVE AS
SOON AS POSSIBLE.
2. WITH REGARD TO THE POINTS MADE IN SECOND TUR WE HAVE DISCUSSED THESE FURTHER WITH OUR LEGAL ADVISER AND THE POSITION IS AS FOLLOWS.
3. YOUR PARAGRAPH 2. THE PROPOSAL THAT AN APPEAL SHOULD LIE FROM THE
GOVERNOR TO THE GOVERNOR IN COUNCIL IS INDEED UNUSUAL AND WE HAVE
NOT (AS YET) BEEN ABLE TO FIND A PRECEDENT. WE ARE ADVISED,
HOWEVER, THAT ALTHOUGH AS YOU POINT OUT THE GOVERNOR AND THE GOVERNOR IN COUNCIL ARE THE SAME PERSON IN THEORY, THEY ARE
DISTINGUISHABLE IN PRACTICE AND THE PROVISION FOR APPEALS TO THE
GOVERNOR IN COUNCIL COULD PROVIDE A VALUABLE PROTECTION FOR THE
FUTURE. NEVERTHELESS IF THIS CAUSE YOU DIFFICULTY WE ARE PREPARED TO
REVERT TO THE GOVERNOR IN BOTH CLAUSES.
4. YOUR PARAGRAPH 3. WE HAVE CAREFULLY CONSIDERED YOUR POINT, WHICH
IS A VALID ONE, BUT THE VIEW HERE IS THAT SUCH A PROVISION IS ESSENTIAL IF WE ARE TO AVOID PROBLEMS AND LENGTHY DELAYS IN DEALING
WITH INEQUITIES IN INDIVIDUAL CASES WHICH ARISE FROM TIME TO TIME.
FOR EXAMPLE, THIS PROVISION COULD BE USED TO HONOUR AN UNDERTAKING
GIVEN TO ONE OR TWO FORMER AGREEMENT OFFICERS FROM OTHER TERRITORIES
THAT THEIR SERVICE ON AGREEMENT WOULD COUNT AS QUALIFYING SERVICE. WE THEREFORE WISH TO RETAIN THIS PROVISION BUT ARE OPEN TO SUGGESTIONS AS TO HOW IT MIGHT BE CIRCUMSCRIBED TO LIMIT THE POSSIBILITY OF GIVING RISE TO THE ACCUSATIONS YOU FEAR.
5. ON THE LCS QUESTION, YOUR PARAGRAPH 4, WE PROPOSE TO BRING IT IN ADMINISTRATIVELY AT LEAST IN THE FIRST INSTANCE. ONCE IT HAS BEEN IN OPERATION FOR AWHILE AND WE HAVE DONE ANY FINE TUNING WHICH
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| PROVES