198

FCS/92/xxx

CHIEF SECRETARY

CONFIDENTIAL

Issue

Hong Kong:

1.

Arrangements for HM Overseas Civil Service

to agree

as

We are to meet on 13 November (with the aim of reaching -agreement on a package of measures which will provide 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

3.

I have examined all the options identified.

I am

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 safeguard for pensions provided by HMG, as envisaged in Option A. I believe the trigger-rate should be

Tor 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.

sos.min.HMOCS

MVS

CONFIDENTIAL

1

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