HKA 233/1
CONFIDENTIAL
21 JAN 1992
Pa
FROM: M V Stone
Hong Kong Department
DATE: 21 January 1992
Mr Ricketts
minity
PS/Lord Caithness
HMOCS MATTERS: UPDATE
て
cc: Sir J Coles
Mr Burns
1.
Before he sees the Governor, Lord Caithness my wish to be aware of the outcome of a meeting today between the Treasury, ODA, HKG and FCO, and Mr Margolis of Smith New Court, who is conducting a consultancy for the Hong Kong
Government on the feasibility of a private sector scheme to give some assurance to Hong Kong civil servants over their pensions.
2.
In summary, Mr Margolis has not yet ruled out the possibility of the private sector being interested in participating in a scheme which might interest some civil
servants. He plans to finish his study by the end of
February. HKG will then have to consider the proposals but it is by no means certain that firm conclusions could be then drawn one way or the other. Much depends on how the markets will assess the political risks of accepting long-term Hong Kong dollar commitments of a kind which do
not yet exist.
3. The door is therefore still open for the Treasury to argue that the commercial loan option merits further
CHAAGG/1
CONFIDENTIAL
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