CONFIDENTIAL
officers and help anchor them in position, thus
strengthening the authority of the new Governor and his government over the next five years, improving the prospects for a smooth transition and making it less likely that the
liability will ever become real. Taking action now will
also make it easier for us to hold the line that these are specific arrangements deriving from our historical
obligations towards HMOCS officers: if we were to leave the matter unresolved until problems actually occurred it would be much harder for us to hold the line against claims by
non-HMOCS officers, who have shown equal commitment in Crown
service, to receive equal support from HMG.
11. Once we have agreed the principle of an HMG-backed
sterling safeguard, our officials can look again at the
practical details to ensure that the liability is fixed at
the minimum level necessary to fulfil our obligations. I should be happy to meet you to discuss the question if you would find this helpful. If we cannot reach agreement we shall need to discuss collectively with colleagues.
12. I hope we can also make early progress on amending the SPOS regulations for existing pensioners: David Mellor recognized "the degree of inequity" in the way they operate at present (his letter of 24 February).
Approved by the Foreign Secretary and
signed in his absence Simon Gass
(Private Secretary)
(DOUGLAS HURD)
Foreign and Commonwealth office
1 May 1992
ARRAFT/5:
COMEFIEREA P