If,

increases, no SPOS is currently payable to Mr Rainbird.

through a further deterioration of the exchange rate, the sterling

value of the increases was to fall below the UK figure, then SPOS

would make good the difference.

the

Mr Rainbird is particularly concerned that the Hong Kong dollar

will collapse in

in the run-up to 1997. In the past,

link

between the Hong Kong and US dollars has proved resilient and it

is far from certain that these currencies will continue to weaken

against sterling. Nevertheless, as we approach 1997, we are very

aware of the concerns of past and present HMOCS officers about

their pensions and we shall keep the matter under review, in close

consultation with the Hong Kong Government.

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