Refici to folid 601

HIKA 233/1

FCS/92/198

CHIEF SECRETARY

1.

Hong Kong:

CONFIDENTIAL

HKD

X:PS

PS| Baroness Chether PS/M/Goallad PS|PUS Sir J Coles

Mr Kirby ODA

Mr Hum

Miss Brooks, Legal Adwiners Mr Fifoot, ODA

Mr Fish, ODA

Arrangements for HM Overseas Civil Service

605 Fité

RMD.

10/11

We are to meet on 13 November to agree a package of

measures as a basis for further consultations with the HMOCS

Association.

2. I now enclose the paper produced by our officials with costed options. My comments are as follows.

Package for HMOCS

I am

3. I have examined all the options identified. satisfied that the conclusion in my minute of 12 June remains

valid that the minimum that we could defend as a fair

proposal to HMOCS officers would be a package comprising:

(a) a sterling safequard for pensions provided by HMG, as

envisaged in Option A. I believe the trigger-rate should be

HK $16: £1 ; and

(b) a compensation scheme on traditional lines for all officers serving on 30 June 1997, with payments phased over

five or six years.

I think we have agreed that the present UK pension supplements

(SPOS) should also be made more equitable.

CONFIDENTIAL

1

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