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RECORD OF A MEETING ON HER MAJESTY'S OVERSEAS CIVIL SERVICE

(HMOCS) PENSIONS AND STERLING SAFEGUARDS, AT 1430 ON

THURSDAY 15 NOVEMBER 1990

Present:

FCO

Mr Paul

Mr Stone

Miss Coglin

Mr Fifoot

Mr Shipley, HKG

ODA

TREASURY

Mr Kerby

Mr Rew

Mr Fish

Mr Rayson

Mr Brancen

A: Background

1. Mr Shipley explained that Her Majesty's Government's

(HMG) obligations regarding matters of HMOCS were set out in

two White Papers, Colonial 306 and Command 1193. In Colonial 306, HMG had acknowledged its special obligations

to members of HMOCS. The remaining real obligations were compensation and pensions. Command 1193 had embroidered on this background. The two papers had formed the framework

for arrangements in other Colonies going to independence and

although Hong Kong's circumstances were different, the

considerations were identical. However, the political reality was that it was impossible for HKG to treat members

of HMOCS differently from local officers. It was HMG, not HKG that made this distinction in the Hong Kong Civil Service. HKG viewed all officers as the same. Any special

obligations to members of HMOCS should fall to HMG.

2. Mr Fish said that the main difference between Hong Kong and other DTs was that Hong Kong had a fluctuating exchange rate whereas in other cases, the currency had been tied to

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