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(b) the question of HMG taking over HMOCS officers'
pension entitlements at the expense of HKG (to which HKG was
strongly opposed as divisive and difficult with LegCo and which would undermine our reassurances on the credibility of the JD) should be reviewed in 1990 (capitalised value of entitlements in 1997 estimated at £210m at 1985 prices).
5. The Chancellor agreed, subject to implementing the compensation and sterling safeguard proposals only if HKG was prepared to pay for them, and subject to the Foreign Secretary's accepting that if the liability arising from Carr-Robertson materialized it would be a charge on FCO/ODA, "and I cannot of course undertake that any additional money would be available for this purpose".
6.
The Prime Minister was "not entirely happy" with what was proposed and regretted that it seemed impossible for HKG to "go some way to funding" the capitalized value of HMOCS entitlements in 1997, although she noted this would be reviewed in 1990. But provided all colleagues were content (no others commented), she was content to go along with the proposal.
Ministers
7.
The Foreign Secretary later minuted to the Chancellor that if it proved impossible to persuade HKG to finance the arrangements or if the SARG subsequently reneged "it is only realistic to recognise that there would be strong pressure upon HMG to finance such arrangements themselves. would then have to decide how to react. If HMG had at the end of the day to accept these commitments, the vote responsibility would naturally fall to the FCO/ODA. The question of how expenditure should be financed would have to be discussed at that time, between the Ministers of the day".
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