CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 2037

OF 011435Z NOVEMBER 90

CONFIDENTIAL

+31/6

HKB +3

70

024313

MDHOAN 0558

TOP COPY Q DIST?

79

PERSONAL FOR GOVERNOR FROM PAUL, HKD

CIVIL SERVICE PENSIONS: CURRENCY PROTECTION

I HAVE JUST SEEN THE MINUTES OF THE MEETING OF THE EXECUTIVE COUNCIL OF 23 OCTOBER, AT WHICH THIS SUBJECT WAS CONSIDERED.

1.

2.

THE MINUTES STATE THAT QUOTE AS A RESULT OF THE CHANGE IN SOVEREIGNTY IN 1997, (HMOCS MEMBERS) WOULD LOSE THE PROTECTION OF THE SECRETARY OF STATE. HMG HAD ACKNOWLEDGED THIS AND WAS EXPECTED TO DEVISE AN APPROPRIATE SCHEME WHICH MIGHT INCLUDE AN ELEMENT OF CURRENCY PROTECTION UNQUOTE.

3.

I HOPE THAT THIS DISCUSSION WILL NOT HAVE RAISED EXCO'S EXPECTATIONS ABOUT THE POSSIBILITY THAT HMG WILL FINANCE A SYSTEM OF STERLING SAFEGUARDS FOR HMOCS OFFICERS. AS MY TELNO 2000 MADE CLEAR, THERE IS STRONG RESISTANCE TO THIS IDEA FROM THE TREASURY · RESISTANCE THAT WILL NOT BE EASILY OVERCOME IN THE FORESEEABLE FUTURE.

-

HURD

YYYY

ΜΑΙΝ

17

LIMITED

HKD

NNNN

DISTRIBUTION

17

MR MCLAREN

MR BURNS

PAGE 1 CONFIDENTIAL

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