SECRET
126037
MDHIAN 8367
THE BL. IF THE PROPOSAL INCORPORATED THE CONCEPT OF AN INDEPENDENTLY MANAGED FUND HELD OFFSHORE IT WOULD SEEM THE MORE OFFENSIVE. IN MY VIEW THE ONLY WAY IN WHICH PENSIONS FUNDING COULD BE MADE ATTRACTIVE IN PEKING WOULD BE TO REVERT TO SOMETHING LIKE THE CHINESE PROPOSAL, WHEREBY PENSIONS EARNED PRE-1997 WOULD BE FUNDED IN ADVANCE WITHOUT AFFECTING THE HK25 BILLION WHICH WE HAVE UNDERTAKEN TO LEAVE IN THE RESERVES. BUT THIS OF COURSE HAS NO APPEAL FOR US.
MCLAREN
YYYY
ΜΑΙΝ
40
DISTRIBUTION
40
.HER MAJESTY'S OVERSEAS
.CIVIL SERVICE RESTRICTED
HKD
LEGAL ADVISERS//MISS BROOKS
FED
NEWS D
RAD//MR WYE
RMD
OVERSEA PENSIONS/ODA//MR FISH
PS
PS/MR GOODLAD
PS/MR PATTEN
PS/PUS
SIR J COLES
MR HUM
MR KERBY
NNNN
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