OVERSEAS SERVICE PENSIONERS' ASSOCIATION
PRESIDENT :
The Lord Grey of Naunton, GCMG GCVO OBE
SECRETARY:
Mr. C. D. Stenton
HKB 233
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63 CHURCH ROAD
HOVE SUSSEX
BN3 2BD
14 NOV 1990
38
R.A.Burns Esq.,
Your Ref:
NURA
Our Ref: F3H.K.
Assistant Under Secretary of State (Asia),
Foreign & commonwealth Office, London. SW1A 2AH
Telephone: Brighton (0273) 721630
30th October 1990
Mr Paul : IND
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Dear Mr. Burns,
I am wondering what, if any, progress has been made since our meeting with you on 9th August and the letter of 24 August from the Minister of State, the Earl of Caithness, when in the second paragraph he promised to look into the issues we had raised with you 'as a matter of priority'.
At the time of that meeting the Hong Kong dollar stood at about 14.5 to the pound, it is now about 15.2 and has been up to 15.5. The pensioner quoted by Mr Haye in paragraph 2 of the note of our meeting is now £9,000 a year worse off. Although such a pensioner may not be in distress or hardship, he is now only receiving two thirds of the pension in sterling which he would be receiving if it was still converted at the exchange rate effective when he retired, and such a loss inevitably seriously prejudices his financial situation and commitments. Such a loss of a third of pension is having a very serious effect on pensioners from the lower ranks of the service, including police, who have retired on much smaller pensions. We feel very strongly that this is not a situation which can just be left to slide.
A new dimension in this situation has appeared since our meeting, namely Britain's entry into the ERM. Whereas in recent years we have often been met with the argument that as the £sterling may again depreciate in terms of the US dollar, so such a 'swing' will benefit those pensioners who have been losing on the HK dollar depreciating 'roundabout'. It would seem that such an argument is no longer valid due to the £sterling now being pegged, subject to a 6% marging, through the ERM to the D-mark. The value of HK pensions paid or received in sterling now depends on the US$/D-mark exchange rate. It looks therefore that for the presently foreseeable future the HK$/£stg exchange rate will remain at HK$15+, and all pensioners who retired ata lower rate will be losing out.
We are due to hold an Executive Committee meeting of the Association on 20th November, when the position of the Hong Kong pensioners will be a burning issue. It would be very helpful if you could let me have information as to the progress of the representations which HMG has made to the Hong Kong Government that they should take action to protect the sterling value of the pensions paid to the former members of HMOCS.
Mr Stone
For urgent
conjunction
action in
with 004
Yours sincerely
F. N. Tusuell.
F.N.M.Pusinelli
310
Chairman