CONFIDENTIAL
HKA 233/1
14 APR 1992
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FROM: R A Burns
DATE: 8 April 1992
CC:
Mr Ricketts, of
Mr Stage
HKD
Mr Broadbent Mr Cox,
HKD
er yes. 41314
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Miss Burners When backy! On 14/4
HONG KONG: HMOCS
1. During my visit to Hong Kong with Mr Broadbent and Mr Cox we discussed HMOCS issues. Mr Cox stayed on for further talks with HKG and the Association, but we did have an opportunity to talk the issue over with K Y Yeung.
Civil Service Pensions
2. K Y Yeung agrees that the Margolis scheme is loopy, and he is privately devising his own alternative with Citibank. This seems to involve the loan of the commutable sum in HK dollars, deposited with some bank in US dollars as collateral. Interest rates cancel out. AIG provide political risk insurance perhaps 2% premium. The Bank squares its position with the Exchange Fund - $ 1 billion a tradeable transaction (but there is an exchange rate risk is it difficult to buy forward five years + ?). Does it apply only to people due to retire within 10 years?
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3. HKG to provide advances of the commutable sum five years ahead? This has not yet been discussed by K Y Yeung and SCS.
EM8AAM
Паз
R A Burns
p.a.pls
R 243
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