Mr Burns
STERLING SAFEGUARDS
CONFIDENTIAL
FROM: M V Stone
Hong Kong Department
DATE: 15 August 1990
cc: Mr Kirby, ODA
Mr Fish, ODA
Mr Rew, Treasury
Mr Paul, HKD
Miss Marsden, HKD
Problem
1.
Both the Hong Kong Government and HMG have been saying
that responsibility for doing something on sterling
safeguards for pensions of Hong Kong HMOCS members is a
matter for the other party. Should or how do we resolve this impasse?
Recommendation
2.
I recommend that we should accept that responsibility
for this issue lies with HMG but state that we see no reason
at present to take any action. Privately we should
acknowledge that we may need to introduce a sterling
safeguard in the circumstances set out in paragraph 13
below. OD (K) consideration will be needed.
RODACP/1
CONFIDENTIAL