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CONFIDENTIAL

OPTIONS WITHOUT HMG FUNDING

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No governmental arrangements for HMOCS officers.

Officers wishing to protect their pensions buy short-term private-sector political risk insurance and/or exchange- rate hedging.

HMG make Order in Council to over-ride Hong Kong's pensions legislation and Legislative Council control of finances and to instruct HKG to pay over funds to HMG in respect of HMOCS compensation and pensions.

CONFIDENTIAL

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