HKB 233/1
Mr Ricketts
Rick
HMOCS PENSIONS
CONFIDENTIAL
FROM: M V Stone
Hong Kong Department
DATE: 12 December 1991
cc: Mr Burns
Mr Cox
Miss Williams
228
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1.
Paragraphs 4 and 5 of your minute of 12 December to Mr Cox deal with one aspect of improved security of pensions which the Hong Kong Government is looking at. I had heard about this proposal when I was in Hong Kong. I believe the Treasury have merely seized upon this as a good excuse further to delay consideration of HMOCS issues.
2. This proposed scheme is only going to be attractive to officers who think that the Hong Kong Government/SARG is going to collapse. As you state, officers will have to take out a loan against their pension from the banks. The banks will clearly charge interest, in addition to any other fees and charges they may levy for implementing the scheme. would have to be pretty desperate to accept part payment of your pension on these terms. And, if the situation is desperate, the banks will clearly not lend the money because the "security" would begin to look distinctly insecure.
You
3. I also very much doubt that HMOCS officers would be attracted by this proposition. Why should they be when HMG has a "commitment to protect their pensions?
4.
All very depressing.
Mill Stre
M V Stone
MVSAAP
Good
goints. Mr Fish feemed quite attractad
by te idla he is back
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we'll need to conspire with him whe
CONFIDENTIAL
Poliz