Refici to folid EO!)

HKA 233/1

FCS/92/198

CHIEF SECRETARY

Hong Kong:

CONFIDENTIAL

HKD

*:PS

PS| Baroness Chether PS (Mr Goallad PS|PUS

Sir J Coles

MiKirby ODA

Mr Huma

Miss Brooks, Legal Adhuines Mr Fifoot, ODA

Mr Fish ODA

Arrangements for HM Overseas Civil Service

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

measures as a basis for further consultations with the HMOCS

Association.

605 Fité

•CHIEF

S.Of.S SECRETARY:

емо

10 NOVEMBER

BB

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

2.

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

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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