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PERSONAL FOR SHIPLEY FROM PAUL, HKD
HMOCS MATTERS: THE CHIEF SECRETARY'S MEETING WITH OSPA ON 20 NOVEMBER
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1 I AM FAXING TO YOU THE RECORD OF SIR DAVID FORD'S MEETING WITH OSPA WHICH TOOK PLACE IN LONDON ON 20 NOVEMBER. OSPA HAVE SENT THIS RECORD TO US, WITH THE COMMENT THAT ''IT WAS MOST GRATIFYING TO RECEIVE SIR DAVID'S CONFIRMATION, AS RECORDED IN PARAGRAPHS 2 AND 5, THAT THE HONG KONG GOVERNMENT AND HMG ARE INDEED WORKING TOGETHER TO FIND A SOLUTION TO THE LOSS IN STERLING VALUE IN HONG KONG PENSIONS''. THE LETTER CONCLUDES THAT ''WE NOW AWAIT THE RESULT OF (THESE) CONSULTATIONS. HOPEFULLY THE NEW YEAR WILL SEE AN EQUITABLE SOLUTION BEING REACHED.
2. I HAVE TO SAY THAT SOME PARTS OF THIS RECORD, AND PARTICULARLY PARAGRAPHS 2 AND 5, HAVE CAUSED SOME RAISED
EYEBROWS HERE. IF THE RECORD IS INDEED ACCURATE IT GOES RATHER FURTHER THAN WE WOULD HAVE THOUGHT PRUDENT UNDER THE CIRCUMSTANCES. I AM SURE THAT THE TREASURY (WHO HAVE NOT SEEN THE RECORD) WOULD SHARE THAT VIEW.
3. MOREOVER, PARTS OF PARAGRAPH 5 READ VERY ODDLY INDEED AND I ASSUME THAT OSPA MUST HAVE MISREPRESENTED WHAT WAS SAID. FOR EXAMPLE, THE FIRST SENTENCE SUGGESTS THAT WE ARE WORKING JOINTLY ON THE ''OSPA FORMULA''. THIS SEEMS TO REFER TO THE FORMULA SET OUT IN PARAGRAPH 4 OF THE RECORD. BUT AS YOU KNOW WE HAVE NOT EVEN GOT AS FAR AS DISCUSSING HOW A STERLING SAFEGUARD WOULD OPERATE IF ONE WERE TO BE INTRODUCED. THE SECOND HALF OF THE FIRST SENTENCE IN PARAGRAPH 5 SUGGESTS THAT HMG ARE THINKING IN TERMS OF A STERLING SAFEGUARD AT ABOUT THE CURRENT EXCHANGE RATE. AGAIN, THIS IS NOT THE CASE.
4. I SHOULD BE GRATEFUL FOR YOUR COMMENTS ON THE ACCURACY OF THE RECORD, IN PARTICULAR AS FAR AS PARAGRAPHS 2 AND 5 ARE CONCERNED. WE SHALL IN DUE COURSE NEED TO REPLY TO OSPA,
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