CONFIDENTIAL
HKA 233/1
522
026715
MDHIAN 8979
CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 2323
OF 15080OZ SEPTEMBER 92
INFO ROUTINE PEKING, UKREP JLG HONG KONG
502
TOP COPY
Q DIST?
YRTELNO 1263: HMOCS: PRIVATE SECTOR PENSION OPTIONS
1. WE HAVE OBTAINED WRITTEN ADVICE FROM THE HONG KONG BANK. IN THEIR VIEW A LIMITED SCHEME FOR SOME 300 HMOCS OFFICERS WOULD NOT BE FEASIBLE. A COPY OF THE BANK'S LETTER DATED 11 SEPTEMBER IS BEING FAXED TO STONED (HKD).
2. IN ADDITION, ON GENERAL PUBLIC SERVICE PENSION SAFEGUARDS, WE HAVE DISCUSSED THE ISSUE OF POLITICAL RISK INSURANCE WITH THE AMERICAN INSURANCE GROUP (PARA 6 OF TUR). THE LATTER FORESEE PROBLEMS WITH ANY COVERAGE FOR A PERIOD IN EXCESS OF THREE YEARS AND THE POLITICAL RISK INSURANCE MARKET DOES NOT HAVE THE CAPACITY TO INSURE LOANS AGAINST CIVIL SERVICE PENSIONS AS ORIGINALLY ENVISAGED. IN VIEW OF THIS ADVICE AND THE EARLIER NEGATIVE REACTION FROM THE BANK WE ARE NO LONGER PURSUING THIS
OPTION.
MACLEOD
YYYY
MAIN
41
DISTRIBUTION
41
.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/PUS
SIR J COLES
MR HUM
MR KERBY
MR MUIR
Maaral
PAGE 1 CONFIDENTIAL