CONFIDENTIAL
168 каути том
likel Hal te
Sterling safeguard
would not Alto da
be invoked +1
would cost
W norting.
given Hong Kong's geographical position, at the heart of the world's
Musk
rem
fastest-growing region, this risk should be low. HMG have
made arrangements to protect the sterling value of pensions
decolonication in all 42 previous/cases: we have an obligation to do so in the case of Hong Kong also.
The Consultations mit mmors officers in Hong Kong showed Hat we must also
3. We have needed to improve our proposal for compensation.
commitment
Itt st The total expenditure now envisaged is £41-£47 million at
1992 prices or £37-£43 million at 1991 prices. In his
to the Chief Socretary letter of 1. Feby the Secretary of State stated that the maximum cost would be £39 million: thus still roughly within the envelope envisaged.
Got figonhearth more
im
our current proposal is.
Spread
Iver 50rG Glera
from
997)
1997
and the likely cost between 820 d £32
million. The
improved offer would
offer would no, Herefore, Gort more
2.
Ita abod $2 millia
A
year extra.
PF Ricketts
PJZAYO/2
CONFIDENTIAL