R.J.T. McLaren, Esq.

-2-

April, 1990

Sir David has been asked to look again at some technical details, e.g. the feasibility of using the Hang Seng Consumer Price Index rather than Consumer Price Index 'A' as a base for pension increases, because of its greater relevance to Hong Kong/United Kingdom pensioners' household expenditure levels; or the possibility of relating pension increases to Hong Kong Government salary increases, as these are now tracking the private sector in Hong Kong more closely than in the past. But what is really needed is direction from London.

We are

aware that matters of greater moment preoccupy you, but hope that you can address this issue because it is a matter as much of equity as of great concern to our Hong Kong constituents.

Thank you again for your sympathetic letter of 13 February and in particular for your assurance that MOCS officers can count on Her Majesty's Government for the continued payment of pensions after 1997 if the Hong Kong SAR Government fails to honour its commitmont to do so under the Sino British Joint Declaration.

This correspondence with you has overlapped my lesser of 26th January to the Minister of State, Mr. Francis Maude, .P., seeking an assurance regarding a general compensation scheme in view of the transfer of sovereignty in 1997. I still await a reply from the Minister, and hope that it too may be forthcoming.

Yours sincerely,

Encs.

(F.N.M. PUSINELLI)

Chairman

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