CONFIDENTIAL
Disadvantages
(a)
(b)
(c)
(d)
Provides limited reassurance to those who need it now HMG would be taking a punt on the exchange rate - if the HK dollar was very strong over the extended period to 1997 and depreciated substantially thereafter, HMG could incur
significant costs
Officers may press for the safeguard to be based on HK salary levels prevailing nearer to 1997 which is likely to be more expensive
Depending on chosen level of support, may be opposed by some serving officers as not taking account of differentials which are greater for Administrative Officers and Judges than for Police
options.1.
SLM
CONFIDENTIAL
6