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the case. HMG would seem to have options open to tackle
this:
(a) to seek to persuade or to direct HKG to make suitable
arrangements to protect the sterling value of HMOCS
pensions pre 1997; and/or
(b) to seek HKG's/SARG's agreement to HKG/SARG providing a sterling link for HMOCS officers pensions post 1997.
Hnors members. This would have the effect of reassuring them now, and persuading them to stay; or if (b) fails
(c) to take upon ourselves a commitment to provide a
sterling link for pensions post 1997.
13. On (a) ExCo has already stated that they consider this
a matter for HMG. HKG has said so frequently. There is
effectively no prospect of persuading them to change their view. A direction would be possible but would be drastic in
the extreme and is not recommended.
14. On (b), we have not yet ruled out the possibility of negotiating a POA, in which a sterling safeguard was included and funded by HKG/SARG. But given the Joint Declaration and the guarantees built into it, it is difficult to see either HKG or the Chinese (looking after the SARG's "interests") agreeing to this. It is
nevertheless an avenue that we could explore further before considering embarking on (c) in paragraph 12 above.
Post 1997
15. As explained above, in previous colonies HMG concluded
a POA with the successor Government to safeguard the position of HMOCS members: and the POA invariably contained
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