CODE 18-77
File
App
Reference
Mr Fish
ODA
(BY FAX)
HKA 233/1 RECE
22 FEB 1993
TRY
DESK OF INDEX
PA
REGISTRY Auction Tak
8
STERLING PENSION SAFEGUARD
1.
I have looked back at the letters from Kevin Woodfield setting out the Treasury's understanding of how the pension safeguard mechanism should operate. It is clear that at that time they envisaged the safeguard applying to the basic pension only.
2.
I attach a draft letter to Mr Woodfield and would be grateful for your comments. I doubt there is much we can do to persuade the Treasury to revert to the earlier understanding (particularly as the Governor has already said that he has no major difficulty with the mechanism set out in Chief Secretary's letter of 15 January), but we must now push as hard as possible for the amendment to SPOS to be included as part of the package for the next round of consultations.
3. If the Prime Minister calls a meeting between the Chief Secretary and the Secretary of State, one idea we might consider is to agree the Chief Secretary's proposed mechanism for the safeguard in exchange for the SPOS amendment.
what
NC G Whitney
Hong Kong Department WH 304 270 2651
22 February 1993
fish.grd.ADM
SLM