CONFIDENTIAL

BIED-E

and they need to consider it as part of the wider question

of terms and conditions for their Civil Service up to 1997.

We continue to explore the possibilities with them. But as

we envisage no UK financial commitment, I do not think we

need discuss this when we meet.

4. I hope you will agree that we also need not discuss the

question of UK pensions supplements (SPOS) payable to

existing Hong Kong pensioners under UK pensions

legislation. David Mellor recognised the degree of

inequity of present arrangements, so I hope that we can

agree now that officials should implement the necessary

changes.

5.

These commitments would all be handled by the ODA, with costs being charged to the Superannuation Vote. They would

require separate provision from 1997 onwards (John Major

accepted in 1988 that we could not justify the diversion of

Aid funds to Hong Kong for the compensation scheme but left it to a future government to decide how to deal with the

funding in PES terms.)

6.

I am copying this minute to the Chief Secretary.

و

(Approved by the Foreign Secretary

and signed in his absence by

Simon Gass, Private Secretary)

Foreign & Commonwealth Office

12 June 1992

CONFIDENTIAL

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