815
BY FAX: 0372 723755
1 + 13
HKA 233/1
TO: MR PAUL FIFOOT
LEGAL ADVISER
HKD/FCO
FROM: ALAN N MCDONALD
OPD/ODA
EAST KILBRIDE
FAX NO: 0355-84-4099
TEL NO: 0355-84-3576
HONG KONG: PENSION SAFEGUARD FORMULA AND RULES
I am sorry it has taken me so long to put together some sensible rules to cover the pension safeguard arrangements as envisaged by the Treasury. The attached formula and rules still require some fine tuning but I think you will be able to draft a scheme around the five scenarios (A to E) described in the paper. To help you in this task, I have also prepared a set of diagrams (A to F) which show how the scheme will operate in relation to the circumstances described at A and E.
2. As you will see there are a number of policy issues yet to be considered, eg the rate of exchange to be applied in circumstance C2. This should not, however, prevent you from producing a first draft which we can test.
3. Once you have read the paper I think it might useful if we have a talk about it before you put pen to paper.
Please give me a call.
(Um, 1 M'Onde)
Alan N McDonald
Policy and Procedures Unit ODA
cc: Mr Fish ODA
Mr Plumb ODA
Mr Foy ODA
Mr Whitney HKD/FCO
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