CONFIDENTIAL....
TH THE N KONG
GOVERNMENT COULD DEVISE SCHEME TO PROTECT THE, STERLING VALUE OF HMOCS PENSIONS IN ISOLATION. THIS WOULD LEAD TO EXTREMELY SERIOUS
REPERCUSSIONS FROM LOCAL STAFF WHO SEE THEMSELVES AS NO DIFFERENT
FROM THEIR EXPATRIATE COUNTERPARTS. IT SHOULD BE BORNE IN MIND THAT
THE HONG KONG GOVERNMENT HAS AN EQUAL RESPONSIBILITY TO ITS LOCAL
AND EXPATRIATE CIVIL SERVANTS. AS YOU ARE AWARE, AN INCREASING
NUMBER OF LOCAL PENSIONERS ARE NOW RESIDENT ABROAD. ANY SPECIAL
RESPONSIBILITY FOR MEMBERS OF HMOCS IS HMG'S.
4. AS TO THE EXTENT OF THE PROBLEM, WE HAVE RECEIVED REPRESENTATIONS
ON THE EXCHANGE RATE ISSUE FROM 20 OF SOME 1500 PENSIONERS RESIDENT
IN THE U K. THESE ARE NEARLY ALL FROM OFFICERS WHO RETIRED WHEN THE
HONG KONG DOLLAR/POUND EXCHANGE RATE WAS PARTICULARLY FAVOURABLE
BETWEEN HKD8-9 TO THE POUND. WE HAVE HAD NO COMPLAINTS FROM THOSE
WHO RETIRED WHEN THE RATE WAS HKD16 TO THE POUND. WE HAVE ALSO COME
ACROSS THREE CASES OF PENSIONERS SUFFERING FINANCIAL HARDSHIP, NOT LINKED TO, BUT POSSIBLY AGGRAVATED, BY EXCHANGE RATE FLUCTUATIONS
WHICH WE HAVE REFERRED TO OUR LONDON OFFICE TO SEE IF THEY CAN
QUALIFY FOR ASSISTANCE UNDER UK WELFARE SCHEMES.
!
5. AS ALREADY MENTIONED, SERVING OFFICERS ARE EQUALLY CONCERNED
ABOUT THE VALUE OF THEIR PENSIONS. THE SUPERINTENDENTS' ASSOCIATION
OF THE ROYAL HONG KONG POLICE FORCE HAS RECENTLY REITERATED ITS VERY
STRONG FEELINGS ABOUT THE NEED FOR PENSIONS TO BE SAFEGUARDED. AMONG
THAT OTHER THINGS, THE ASSOCIATION HAS ASKED THE HMG FORMALLY AGREE TO
RITE UN DERWORLD PENSIONS OF ALL OFFICERS WHO WILL HAVE JOINED THE FORCE
BEFORE 1 JULY 1997 IN THE EVENT OF DEFAULT BY THE SAR GOVERNMENT'
INDEED FOR MOST STAFF, PENSIONS ARE A BURNING ISSUE AT PRESENT.
"
6. AGAINST THIS BACKGROUND, I SEE NO POSSIBILITY OF A CHANGE IN
EXCO'S POSITION THAT STERLING SAFEGUARDS FOR HMOCS PENSIONERS ARE A
MATTER FOR HMG. THIS DOES NOT MEAN THAT HKG WILL NOT CONTINUE TO PAY
THE PENSIONS BUT THAT ANY ADJUSTMENTS TO TAKE ACCOUNT OF CURRENCY FLUCTUATIONS SHOULD BE HMG'S RESPONSIBILITY. SUCH ADJUSTMENTS, AS WE HAVE MENTIONED 'PREVIOUSLY, COULD BE MADE WITHIN THE FRAMEWORK OF
SPOS.
*
LONG
CONFIDENTIAL