TIMAAH (4)
CONFIDENTIAL
HONG KONG EXPATRIATE CIVIL SERVANTS (HMOCS)
STERLING SAFEGUARDS
In other cases question of sterling safeguards has been settled
much closer to the time of constitutional change. It would be a
significant departure from previous practice to contemplate
arrangements for sterling safeguards at this stage.
STERLING VALUE OF HMOCS PENSIONS HAS DECLINED AS US DOLLAR HAS
DEPRECIATED IN LAST THREE YEARS NEED FOR ACTION NOW.
Aware that Hong Kong dollar has declined against sterling over
past three years. Before then dollar was very robust. Not
convinced that, overall, present arrangements work to disadvantage
of Hong Kong pensioners. In longer term it is clear that Hong
Kong/US dollar link makes for stability and certainty.
-
Recognise the impact of fluctuations, such as we have
experienced over past three years, on sterling value of pensions.
Understand that the Hong Kong Government are currently looking at
the possibility of introducing measures to provide relief in cases of serious hardship.
(If necessary) Believe that this is a problem which falls at this
stage to the Hong Kong Government to examine to determine whether
there are acceptable and fair alternative arrangements which could
be put in place.
CONFIDENTIAL
HMOCS
Peròsion).
VALUE