CONFIDENTIAL

the SPOS amendments and the sterling safeguard should be viewed together. I fail to see how members of the HMOCS Association could take a view on a package including a sterling safeguard which would only come into operation after taking SPOS into account without knowing at what level SPOS will operate.

Therefore, our position remains that we must consider the SPOS amendment now.

I am copying this letter to Dave Fish at the ODA.

J C Morris

Hong Kong Department

cc Mr Fish, ODA

CONFIDENTIAL

woodfield.reply/PENSIONS/bp

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