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5. THEY WILL ALSO POINT OUT THAT THE HONG KONG DOLLAR WAS FORMALLY LINKED TO STERLING AT A RATE OF DOLLARS 16: POUND 1 UNTIL 1967. BETWEEN 1967 AND 1971 IT WAS PEGGED AT DOLLARS 14.55:POUND 1. SINCE THEN IT HAS EITHER FLOATED OR BEEN PEGGED TO THE US DOLLAR. SINCE THE END OF THE FORMAL DOLLAR 16:POUND 1 LINK THE HONG KONG DOLLAR HAS NEVER BEEN BELOW DOLLAR 15.83: POUND 1. INDEED FOR SEVERAL YEARS IN THE LATE 1970'S AND THE EARLY 1980'S IT WAS AROUND DOLLARS 10: POUND 1. AT ONE STAGE IT WAS DOLLAR 7.80:POUND 1. THE AVERAGE OVER THE WHOLE PERIOD SINCE DELINKING IS AROUND DOLLAR 12: POUND 1.
6.
SINCE 1947 HMOCS OFFICERS RETIRING FROM HONG KONG HAVE HAD THEIR PENSIONS PAID IN HONG KONG DOLLARS. BEFORE THEN PENSIONS COULD, IF OFFICERS WISHED, BE PAID IN STERLING AT A RATE OF DOLLAR 16:POUND 1. WHILST SOME OF OUR HMOCS JOINED WHEN THE EXCHANGE RATE WAS PEGGED AT DOLLAR 16:POUND 1, THE VAST MAJORITY HAVE JOINED AND SERVED SINCE THEN. THEY WOULD REGARD DOLLARS 13.76:POUND 1 AS THE ONLY REALISTIC RATE. A RATE OF DOLLAR 16: POUND 1 COULD ONLY BE ARGUED AS A BOTTOM LINE BASED ON THE HISTORICAL POSITION AND A DUBIOUS RELATIVITY WITH THE MAJORITY OF OTHER HMOCS TERRITORIES FOR WHICH COMPENSATION SCHEMES AND STERLING SAFEGUARDS WERE PROVIDED IN THE 1960'S.
7. THERE IS NO HKG OBJECTION TO YOUR GIVING TREASURY A COPY OF THE PAPER ON 'HMOCS: GENERAL RIGHT TO RETIREMENT'. HOWEVER THE CONCLUSIONS IN THIS PAPER HAVE TO SOME EXTENT BEEN UPDATED IN THE SECTION ON GENERAL RIGHT TO RETIREMENT IN THE GOVERNOR'S BRIEF.
8.
TWO FURTHER POINTS. REVISIONS TO SPOS ARE REGARDED AS ESSENTIAL TO PROTECT THE POSITION OF EXISTING HONG KONG HMOCS PENSIONERS NOW. ODA HAS A PROPOSAL ON THE TABLE WHICH WOULD RESULT IN A MORE EQUITABLE ARRANGEMENT WHERE EXCHANGE RATE GAINS AND LOSSES ARE TAKEN INTO ACCOUNT BOTH WAYS. THIS WOULD COVER A SEPARATE GROUP OF EXISTING PENSIONERS WHO HAVE A LEGITIMATE EXPECTATION THAT THE PRESENT INEQUITABLE SPOS ARRANGEMENTS WILL BE CHANGED. THERE IS NO REASON WHY TREASURY SHOULD HOLD BACK ON THIS MODEST IMPROVEMENT.
9. SECONDLY, THE REFERENCE IN FIRST TUR, PARAGRAPH 2 TIRET (C), TO THE OBJECTIVES OF THE COMPENSATION SCHEME. THE COMPENSATION SCHEME, INCLUDING GENERAL RIGHT TO RETIREMENT IS NECESSARY BECAUSE OF THE CONSTITUTIONAL CHANGE AND THE HMOCS OBLIGATION.
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