TIMAAH (7)
CONFIDENTIAL
BASIC LAW PROVISIONS FOR PROTECTING PENSIONS
HKSARG IS REQUIRED TO BALANCE ITS BUDGET: IN ORDER TO BALANCE BUDGET
MIGHT CUT EXPENDITURE. THEREFORE MIGHT STOP PAYING OUT PENSIONS.
No evidence to indicate that future SAR Government will not take
its responsibilities towards pensioners seriously. On the contrary, Article 101 sets out those responsibilities clearly.
NATIONAL PEOPLE'S CONGRESS HAS AUTHORITY TO AMEND THE BASIC LAW.
UNLESS SOME ASSURANCE GIVEN THAT THE ARTICLE ON PENSIONS CANNOT BE
AMENDED, FUTURE SAR GOVERNMENT COULD STOP PAYING PENSIONS
We have over the past few months since publication of the second
draft of the Basic Law scrutinized the draft very closely. We have
looked at all the relevant sections carefully and believe that there
are no grounds for concern on the payment of pensions after 1997.
In times when public expenditure may have to be curtailed for
whatever reasons, responsibility for payment of pensions will still
fall upon the SAR Government.
CONFIDENTIAL