CONFIDENTIAL

(b)

governs

(Annex C)

the eligibility for British pension in respect of British civil servants who have service in Hong Kong. However, this rule also recognises service in a host of countries such as Albania, Hungary, the Philippines etc., over whose revenues the UK Parliament cannot possibly exercise control. We are doubtful whether these countries have legislation similar to the two sections, and hence we doubt the need to incorporate them into the laws of Hong Kong. I tend to think that this arrangement actually applies to officers working in the country concerned on behalf of HMG, such as MOD officers.

It

may be considered necessary to bind HKG legislatively to ensure that it will contribute to the portion of the pensions attributable to service in Hong Kong. Even if that is the case, it is not clear how localisation of the two sections in

question would meet this requirement. In any event, it

appears that Part III of our existing pensions Regulations (Annex D) already adequately serves this purpose. This would cover service with the HKG and would allow a UK civil servant to retain his pension rights on transfer overseas pensionable service in Hong Kong or in

to other territories.

Subject to your views on the above two points, it appears to us that it is not necessary to make any further provision in the laws of Hong Kong to preserve British pension rights of British civil servants who are serving or who have served in Hong Kong. Regarding UK civil servants seconded to HK for a specified period, such as our AOSGC colleagues, contributions to UK superannuation form part of the secondment terms agreed at that time.

could be

Incidentally, your telno 1162 implied that there provisions other than sections 38 and 39 of the

1965 Act that need to be localised. We are not clear what

they are and would appreciate your clarification.

your age

Mike Kelalun

(M.J.C. Waters )

for Secretary for the Civil Service

CONFIDENTIAL

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