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in all previous 42 cases since HMOCS was established in
1954, HMOCS officers can be assured that the sterling
value of their pensions will be protected.
I submit a draft minute. This is longer than usual, given
the need to take Mr Portillo through the essential
background. ODA agree.
Background and Argument
3. This is a complex subject, with important political implications in Hong Kong. It has absorbed a great deal of
Ministerial and official time since 1984. The problem is
summarised in the Secretary of State's minute of 11 February
to Mr Mellor and its attachments.
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D
EA
4. On compensation for Hong Kong HMOCS officers, following
Treasury agreement that we should now implement the 1988
agreement between the then Chief Secretary and then
Secretary of State, we have opened consultations in Hong
Kong on our outline proposals. An FCO/ODA team will visit Hong Kong in early May for detailed discussions with the
HMOCS Association Committee. (I shall be submitting
separately on this aspect: initial HMOCS reactions have been
very critical of the modest scale of our proposals, our
failure to offer them the right to retire with immediate
payment of pension after the change of sovereignty and
the lack of news on a sterling safeguard for pensions.)
After the consultations we shall seek to clear final details
with Treasury officials (whom we are keeping informed).
5.
•
As
Meanwhile, the pensions question remains unresolved.
indicated in Mr Cox's submission of 10 March we had hoped
that the Secretary of State's minute to the Chief Secretary
of 11 March would conclude the pre-Election phase of minuting on this, but Mr Mellor replied to it in combative
form on 19 March. His letter shows a shift in the Treasury
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