7. The position of the Hong Kong Government is that
responsibility for the protection of the sterling value of
pensions is a matter for HMG. When ExCo were consulted
about this problem recently, they concluded that it would
not be appropriate for the Hong Kong Government to step in, since measures designed to benefit expatriate officers
(without corresponding measures for local officers) would be
divisive and politically sensitive.
8.
We are therefore in the uncomfortable position of being unable to give HMOCS pensioners a satisfactory response to their complaints, which are looking increasingly justified. As Lord Caithness is aware, we have begun to tackle these issues with the Hong Kong Government and the ODA and Treasury. But progress is likely to be slow and it would be wrong to hold out to Mr Speed and his constituent any hope of an early solution.
JONAFL/3
Arianc
A R Paul