take any action to introduce a sterling safeguard for HMOCS
members pensions unless or until the HK$ did indeed
collapse. Such circumstances would indicate a general
collapse in Hong Kong and HMG's action to safeguard HMOCS
pensions would be unlikely significally to worsen the
situation. If the HK$ were to become worthless, it was
estimated in 1985 that the cost of HMG at 1983/84 salary
levels and exchange rates would be £10.5 million per annum,
continuing at a generally reducing rate until about 2040.
RODACP/9
M V Stone