E
The Executive Council has taken the view that these matters
are for HMG.
17. HKG will be concerned to ensure that any measures HMG
might take would not have a negative impact on their ability
to manage the civil service generally. Thus far HKG has
taken a very relaxed view of the possibility that HMG might introduce sterling safeguards. They have given no
indication that this could cause them difficulties, in that
local civil servants might demand the same. Nevertheless
this must be a worry, both for HKG and ultimately for HMG
should such demands destabilise the civil service. There is
the remote possibility that the introduction of a sterling
safeguard by HMG could undermine confidence in Hong Kong
generally.
The Chinese Authorities
}
18. We did not attempt to include in the Joint Declaration
a sterling safeguard for HMOCS members. It is therefore likely that the Chinese would strongly resist any attempts
now to negotiate such a safeguard with them to be funded
by the HKG/SARG.
19.
The Chinese reaction to HMG putting in place a sterling safeguard for HMOCS pensions is hard to predict. They could denounce it as undermining the Joint Declaration by casting doubt on the stability of the HK dollar or by provoking
devisiveness within the civil service. But given that this
is a measure that have been introduced in most colonies,
their grounds for complaint would not be strong.
Parliament
20.
We can expect the overseas pensioners to lobby to
generate considerable support for the introduction of
ROZAUD/8