ཝཱུ
FCS/92/058
CHIEF SECRETARY
CONFIDENTIAL
Hong Kong HMOCS
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