11/gb/nt1.2011 Telegra Confderhal
HONG
to immediate H-K-
рекия
C
Ная Коля into routine Ukrep JLG Hong Kong fesural for Gow from Birns, Auss Pekus personal for Anjunat KONG HMOCS: COMPENSATION/INCENTIVE
ARRANGEMENTS
VICKER
SCHEME AND PENSIONS
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ODA and Treasury officials have been considering further the suggestions of a compensation/incentive scheme and pensions
arrangements for HMOCS. In particular, attention has focused on possible ways of protecting HMOCS officer pensions from a substantial decline in the value of the Honk
Honk Kong Dollar. Treasury colleagues have made it clear that they are not in a position to recommend to Treasury Ministers that the UK tax payer should be burdened with financial liabilities in respect of Hong
Kong Government pensions without the transfer of related assets.
2. As we see it, the next step must be to consider further the
scope for arrangements which involve the transfer of pension
liabilities and related assets from the Hong Kong Government to
the officers themselves, or to a financial institution on their
behalf, or to the UK in such a way as to meet the interests of all
concerned.
3. We appreciate that you have considered this kind of proposition in principle before but that you did not, at that
stage, consider that a scheme involving the transfer of assets
could be devised in a way which would be acceptable to the HKG.
After further discussions here, however, we consider that the way
forward rests in working up jointly, in a constructive and
imaginative way, the details of arrangements which could be acceptable to both sides. It is important to emphasise that there is no prospect of making progress on questions relating to the
retention of HMOCS officers until this matter has been examined
satisfactorily.
4.
the
The Whitehall team could be ready to leave for Hong Kong in
near future to discuss this. We would, of course, wish to
arrange the visit in a way which was most convenient to you. envisage three or four days of intensive discussions involving the
We