But

salary increases could not exceed UK inflation rates. such a move would be fraught with difficulties. While it would probably be unattractive to many HMOCS officers who hope to continue to receive substantial salary increases in the run up to 1997, it would almost certainly lead to renewed pressure from Hong Kong HMOCS pensioners for sterling safeguards to be applied to their basic pensions, something we have hitherto strongly resisted.

WEDABI/3

CONFIDENTIAL

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