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OCMIAN 3188

CONFIDENTIAL

OO HOKON

FM FCOLN TO HOKON

201600Z MAR

GRS 420

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 841

OF 201600Z MARCH 87

FOR SHIPLEY FROM LEEKS

CONFIDENTIAL

233/2.

TOP COPY Q DIST ?

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YOUR TELNO 1099: NEW PENSIONS SCHEME: DRAFT LEGISLATION

1. THANK YOU FOR THESE FURTHER THOUGHTS.

2.

ON YOUR PARA 2(A), WE HAVE SOME DIFFICULTY WITH YOUR PROPOSAL

ON CLAUSES 27 AND 29, SINCE THE GOVERNOR AND THE GOVERNOR IN

COUNCIL ARE IN FACT THE SAME PERSON (ALBEIT ACTING ON ADVICE FROM

DIFFERENT QUARTERS). ARE THERE PRECEDENTS IN HONG KONG

LEGISLATION WHEREBY AN APPEAL AGAINST A DECISION BY THE GOVERNOR

IS CONSIDERED BY THE GOVERNOR AND EXCO?

3. ON YOUR PARA 2(B), WHILE WE APPRECIATE THE ADVANTAGES OF A

MARGIN OF FLEXIBILITY IN SUCH CIRCUMSTANCES, WE ALSO BELIEVE THAT

SUCH A PROVISION COULD CREATE VERY DIFFICULT PROBLEMS FOR YOU IN

THE FUTURE. A PROVISION ALLOWING THE GOVERNOR TO IMPROVE

BENEFITS IN INDIVIDUAL CASES COULD CONCEIVABLY THROW THE

ADMINISTRATION OPEN TO ALLEGATIONS OF FAVOURITISM.

ON BALANCE THIS IS A RISK WORTH TAKING?

4.

WE WONDER IF

ON THE LCS QUESTION (YOUR PARAS 3 AND 4) YOU ARE RIGHT THAT

IN MANY CASES THESE SCHEMES WERE NOT (NOT) INTRODUCED UNDER LOCAL

LEGISLATION. THE PENULTIMATE SENTENCE OF PARA 8 OF OUR TELNO 820

WAS MISLEADING IN REFERRING TO QUOTE LOCAL UNQUOTE AS OPPOSED TO

QUOTE UK UNQUOTE LEGISLATION IN THIS REGARD (MY APOLOGIES FOR

1

CONFIDENTIAL

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