HKA 233/1
Mr Nigel Cox
Letter sent to
бель Mortimer
Hong Kong Department/FCO
ON
Reference
From: D S FISH
(Ext 3444)
Date: 13 March 1992
17/3
713
W130
HMOCS: STERLING SAFEGUARDS
105
Thank you for your letter of 12 March, following what seems to have been an encouraging discussion with Jamie Mortimer.
1.
2. As requested, I enclose a list of countries where sterling safeguards exist, and another showing those countries where HMOCS pensions have been taken over. You will see that they are virtually identical except that the Bahamas, Brunei, and Bermuda have not been taken over. They are still legally committed to the sterling safeguard, but their currencies have appreciated against sterling and the safeguard has not been required.
3. The key point for the Treasury is that all HMOCS pensions are protected except those earned in Hong Kong. And we have the ludicrous situation where Hong Kong pensioners with colonial service elsewhere have part of their pension protected and part at the mercy of exchange rates.
4.
Initially, the incoming governments accepted the full cost of paying pensions at a fixed rate against sterling. It was part of the "deal" at Independence. HMG did not step in to help with the financial burden until 1971 when the pensions takeover announced.
was
D S FISH
que
Overseas Pensions Department 13 March 1992