HKA 233/1
CONFIDENTIAL
VISIT TO HONG KONG WITH TREASURY AND GAD REPRESENTATIVES 6-13 DECEMBER 1991
1. The main purpose of the visit was to assess the possibility of capitalising Hong Kong HMOCS pensions, and to consider any alternative options which would minimise the financial risk to HMG of a proposal that members of HMOCS should be offered a sterling safeguard to protect the future value of the pensions. The visit took place following a formal FCO/ODA approach to the Treasury on a package of measures aimed at Hong Kong HMOCS officers (past and present), and against a background of a fundamental disagreement about whether HMG has any commitment to
HMOCS officers.
2. I had no doubt that there was a strong moral commitment on the part of HMG to safeguard the interests of HMOCS officers, but well appreciated the Treasury belief that it should be for Hong Kong to fund any protection arrangements which might be thought necessary. The Treasury view was that it was doubtful whether any protection was justified there being no statutory commitment on the part of HMG but in any case the Hong Kong Government was well able to meet any costs which might be involved. However, the Hong Kong Government had made it clear that they would not make special arrangements for HMOCS officers because it would lead to claims for similar treatment for the much larger number of local staff.
3. The Treasury did not feel that the FCO had pursued Hong Kong Government with sufficient vigour on this matter with the result that they were invited to investigate the position at first hand. Hence the visit of team consisting of Sandra Brown, Treasury Expenditure Division, Donald Rayson, Head of Treasury Superannuation Division, Grant Ballantine, Directing Actuary on Superannuation. The Treasury members had been given a clear
brief
from their Ministers to work up, and press for, a
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