Dear David,

"Wymering"

Sheet Common Nr. Petersfield Hants GU31 5AT

27 February 1990

Thank you for your assurance of 15 February that HK-UK pensioners have not been forgotten although you can offer us no currency protection which, you say, "must therefore remain a matter for HMG

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I attach a copy of a letter from Robin McLaren of the FCO to Nigel Pusinelli of OSPA in this context, which says that question of the protection of the value of Hong Kong pensions...we consider to be the responsibility of the Hong Kong Government

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Frankly, I find it difficult to reconcile your statement with Robin's, or vice versa, but perhaps you can clarify. At the next Council meeting of OSPA in March I shall be quoting you and asking that the conflict be taken further with the FCO because we cannot really be asked to fall between two stools when so much depends on somebody (HKG or HMG) assuming rightful responsibility for the protection of the value of HK-UK pensions.

On re-reading your letter, I see you make the fine point that "There is no satisfactory means whereby HKG can provide currency protection for the pensions of overseas officers alone" But why should it be overseas officers alone ? Is it beyond the wit of FB and CSB to devise protection for any pensioner leaving Hong Kong? Local officers are surely covered as long as they draw their pensions in HK ? We would not be complaining if we had chosen to retire in Hong Kong, as some of our illustrious colleagues have done. When you go to EXCO with your other proposals in early April, can you cover this ?

I look forward to hearing from you, as busy as you are, but in any case hope you can give me some time to take this further when I make my annual pilgrimage to Hong Kong in early May.

Cuts.

Clign.

( Colvyn Haye )

Sir David Ford KBE LVO Chief Secretary's Office Government Secretariat Lower Albert Road

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