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st.ps/dr/12pw16.11
HKA 233/1
CONFIDENTIAL
CHIEF
SHE
SECRETARY TO THE
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Dr Reihelts HKD
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Pstro Goodlord от поним
Treasury Chambers, Parliament Street SWIP 3AG
071-270 3000
Fax 071-270 5456
Mr. Kerby ODA Sp. Advises
Stephen Smith Esq
Private Secretary
to the Secretary of State for Foreign Affairs
Foreign & Commonwealth Office King Charles Street
London
SW1
16
November 1992
J
Dear Stephen,
HONG KONG:
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Mary Mr Mugh.
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Thank you for your letter of 13 November covering a draft paper for OPD(K).
2.
болм
As you know, your Secretary of State and the Chief Secretary
Secretary of State's letter of 10 November and the options paper attached to it. I understand they agreed that it would be inappropriate for this subject to be discussed by OPD (K) on Wednesday in view of the need to clarify interaction between possible measures in any package, in particular the Hong Kong Government (HKG)'s intentions on early retirement and the proposed compensation arrangements, and of the substantial, but as yet unclear, expenditure implications of the various proposals.
met this morning to discuss these issues on the basis of your 187
from
3. Your Secretary of State undertook to seek clarification the Governor of Hong Kong on HKG's ideas for extending the availability of its early retirement scheme.
4. In relation to the sterling safeguard, the Chief Secretary explained the logic of his proposal to settle this at an exchange rate of HK$26: £1 under option A. This is the GAD's estimate of the historic relationship between salary and pensions benefits of HK HMOCS and their UK counterparts. He saw no reason to set a sterling pension safeguard at a rate above that which UK
CONFIDENTIAL