cst.ps/dr/8dm18.3
CONFIDENTIAL
File
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Mr Cox dr
We should discuss with
Mr
CHIEF
SECRETARY TO THE
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TREASURY
M' Ricketts, H&D
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Treasury Chambers, Parliament Street SWIP
071-270 3000 HKA 2331
Fax 071-270 5456
The Rt Hon Douglas Hurd CBE MP
142
PS/ Lord Caithness PS/PUS
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Mr Muir
Heads ERD
Nenis (personal)
27 MAX 77
Special Adorizers
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19/3
Secretary of State for Foreign Affairs Foreign & Commonwealth Office King Charles Street
London
SW1A 2AH
19 March 1992
De Lulas,
HONG KONG:
HMOCS PENSIONS
Thank you for your minute of 11 March.
use
∙W82
2. I was disappointed to learn that Malcolm Caithness did not formula on pensions and SPOS which I suggested, and that he preferred to say nothing on these questions when announcing that consultations about a compensation scheme would start shortly. As you know, I viewed the 'say nothing' course as a second best to placing the onus clearly on the HKG to find a solution to HMOCS concerns about pensions.
3. We were reinforced in this view when we saw Hamish MacLeod's considered statement, in the context of the Hong Kong Budget, that the HKG projected accumulated fiscal reserves of HK$71.6 billion in July 1997.
4.
As you will recall, while the HKG accepted in principle that our proposal that they should capitalise the discounted present value of HMOCS pensions was affordable for them, they had invariably cited as a significant constraint the best endeavours undertaking to leave the SARG with reserves of HK$25 billion in 1997. It is clear from the recent Budget statement, however, that the HKG projects having at its disposal, and handing over in 1997 to the SARG, very substantially greater resources than the earlier undertaking would imply.