Mr Dew RMD
HKB 233/1
Reference
HONG KONG COLONIAL PENSIONS
160
11.
Please refer to your minute of 10 October.
File (164)
12.
The ODA write the majority of the material on this subject. However, they consider our involvement necessary because the main point of controversy is a political one. The three proposals a compensation/incentive scheme, a sterling safeguard for pensions, and amendments to the regulations governing Supplementary Pensions for Overseas Service (SPOS) - in the package we put to the Treasury are not themselves controversial. It is the method of financing the proposals which is proving contentious. We are arguing that, for political reasons, we cannot ask Hong Kong to pay. In previous colonies, it has been the coloney (or more precisely the newly independent Nation) which has paid: even if in practice we eventually picked up the bill in most
cases.
foft
3. We do not know, whether any other colonial pensions have affected Diplomatic Wing votes. Perhaps Finance Department has the research capability to look into this.
4. Normally we do copy all correspondence on this subject to the ODA. Mr Ricketts' submission of 8 October was simply intended as an update for Lord Caithness following his return from the Far East. It contained nothing with which the ODA were not already familiar.
мля Mikel & Stee
M V Stone
Hong Kong Department
WH 304
270 2651
1 November 1991
cc: Mr Cox
Mr Grant, Finance Department
CODE 18-77
LESABV