FCS/92/058
CHIEF SECRETARY
HILD X: PS
CONFIDENTIAL
PS / hord Caithnes PS/PUS
Sir J Coles
Mr Burns
Mr Mur
Mr Kerby ODA
Mr Fishi
Hong Kong HMOCS
ODA
FED
182
p.a. pls
11/3
ندها
Legal Advises
biz Grenes
11/3/92
125
1.
Thank you for your letter of 4 March.
Pensions
2.
We are still far apart on sterling safeguards. Let me again place my position on record. It remains my view that HMG are under an obligation to ensure that the sterling value of Hong Kong HMOCS officers' pensions is safeguarded after 1997. In previous cases where the government of the territory concerned was unable to provide such a safeguard because the territory was too poor, HMG stepped in: it was right in these cases to handle HMG's contribution as an aid
measure. In the case of Hong Kong the government of the territory may be unable to provide such a safeguard because of insuperable political obstacles: if so HMG must step in here too, though, given Hong Kong's economic position (confirmed by last week's budget speech), clearly not as an
aid measure.
3. We agree that we must resolve the inequitable operation of SPOS regulations for Hong Kong HMOCS pensioners. However
I cannot accept that this would be a sufficient solution to
the sterling safeguard problem. It is true that in
JIFABG/1
CONFIDENTIAL