CONFIDENTIAL

pension (which arises as a result of exchange rate losses) when quantifying the level of Hong Kong increases to be topped up to UK

levels. However, as you will see from the earlier submission, the

proposal affects individual officers in different ways, depending

on their own personal circumstances, and this makes it very difficult to accurately assess the cost implications. But, if the

safeguard were to be set at 16 HK$ to £1, we estimate that this would give HMG a maximum additional liability of some £2M pa.

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