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HKB 233/1
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Reference
CONFIDENTIAL
From: D S FISH
(Ext 3444)
Date: 21 October 1991
cc Mr J V Kerby
161
Mr M Stone
Hong Kong Department/FCO
1.
58
155
I
Further to Richard Plumb's minute to you of 11 October, have now seen Andrew Burns' letter of 15 October to Mr Mortimer at the Treasury.
2.
There is one additional point which it might be worth making in advance of a meeting. The Treasury letter of 24 September suggests that as we are proposing the transfer of liabilities from Hong Kong, there should be some sort of compensating transfer of assets. This reveals a fundamental misunderstanding of the position. There is no question of Hong Kong transferring liabilities to HMG. The Hong Kong Government intend fully to discharge their liabilities and our judgement is that the SAR Government will do the same. What we have put to the Treasury are proposals for possible additional expenditure which we judge to be necessary given our historical commitment to members of HMOCS and our wish to maximise stability in the period up to 1997 and beyond.
3.
This clarification will not stop the Treasury pressing for the Hong Kong Government to meet the cost of our proposals, but it will significantly weaken the logic of their arguments.
D S FISH
fuḥ
Overseas Pensions Department
21 October 1991
CONFIDENTIAL