CONFIDENTIAL
Mr Glane
Нив 233
490
FROM:
DATE:
3 May 1990
16
Please clear the Mwied
мы
draft with Haykaya mu pred
my geded. I am ready to their a meeting with direich (und the Toy)
M V Stone
Hong Kong Department
When
you admije
minut belo D
Miss Margaon Mr. Hal (first)
Mr McLaren
OVERSEAS SERVICE PENSIONERS' ASSOCIATION (OSPA)
A
1.
We need to reply to Mr Pusinelli's letters of 4 and 25 April, sent in response to yours of 13 February. I attach a draft for consideration. The ODA are content.
I
Ta
B attach a minute from the latter. I recommend that this
draft should be cleared with the Governor/Chief Secretary C before issue, in view of the latter letters on the subject.
2.
Mr Pusinelli seeks a definitive statement on sterling safeguards for pensioners. Mr Fish, ODA Pensions has
D commented on this in his minute of 18 April His view is that
HMG will eventually be forced to do this as we have done in previous colonies: just prior to independence. But as he points out, we need to think through the consequences very carefully, examining the possible claims by BC passport holders and even BDTC's for similar treatment.
E
3. The question of Sterling safeguards is a long running one. We consulted Ministers on it on February 1988 at which time one saw no need to take action. A non committed al answer was given.
4.
I consider that we should be able to hold the line that there is no need now to consider introducing a sterling safeguard. Hong Kong pensioners are, in general, not badly off: certainly no worse than their UK counterparts. Fluctuating exchange rates have been a fact of life since the collapse of the Bretton Woods agreement. While the movements are only fluctuations and not devaluations, OSPA's case for a sterling link is weak.
it
5. On your query as to whether your letter gave an explicit assurance that HMG would pay penions if the SARG did not, did not. We used the well worn phrase "the British Government of the day would take appropriate action in recognition of its responsibilities for HMOCS officers" The question is whether to pass any comment on Pusinelli's interpretation. I recommend not to. It is a fact that in cases where the post-independency Governments of previous Colonies have failed to pay pensions, HMG has stepped in. To try to make the point that you are of course unable to commit a future government would be self evident and could
ROBAVK
CONFIDENTIAL
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