CODE 18-77
MR Wilde
WIAD
Reference..
Da. HMOC.
113
нка
233/
.7 Pf 1993
CONTINGENT LIABILITIES
1.
In his minute of 20 April, Mr Griffiths of Resource and Finance Department invited you to provide a consolidated return of contingent liabilities from your Register of Contingent Liabilities.
2. We are discussing with the Treasury the question of providing a sterling pension safeguard for former Hong Kong HMOCS officers. We have reached agreement in principle with them that there should be a safeguard which would come into effect before 1997, but we have not yet agreed the level at which it should operate. Depending on whether the FCO or Treasury proposals are ultimately accepted, the maximum contingent liability arising from this safeguard would be between £100-250 million.
3. I have asked Steve Persighetti whether it is necessary to include this in your return. He thought it advisable to do If you agree, I suggest amending last year's return to include the following:
Dependent Territories
iii) Sterling pension
safeguard for former Hong Kong HMOCS officers
Comments
Agreement not yet reached with the Treasury on the level at which the safeguard would operate. Depending on the level chosen, maximum
contingent liability would be between £100-250 million.
4. I do not think this would require any amendment to item ii) in your last year's return as by providing this safeguard HMG will be fulfilling its obligations to HMOCS officers, and will not be assuming Hong Kong's liabilities towards its civil servants.
sun
Ad
NC G Whitney
Hong Kong Department
WH 304
22 April
270 2651
wild.min.ADM
SLM