3387
1+1
Per HKA 223311
BY FAX: 071 270
TO:
NIGEL WHITNEY
HKD/FCO
LONDON
FROM: ALAN N MCDONALD
OPD/ODA
FAST KILBRIDE
eed to ful
Kfour BP 218
230
HUA 233/
GTN TEL NO: 7243
3576
LZ AUG 1993
GTN FAX NO: 7243
4099
Dear Nigel
HONG KONG: STERLING SAFEGUARDS
Thank you for letting me see Paul Fifoot's latest FAX (28 July) on the draft Sterling Safeguard Scheme.
2. I think we are very close to having a Scheme which can be presented to Mike Waters as our final effort.
3. I don't need to tell you that
that the Scheme is extremely complicated. Although Paul Fifoot
Fifoot has done a fine job in reducing the text to its bare essentials I am a little uneasy that we have covered all the scenarios listed in my earlier minutes adequately. Perhaps Hong Kong can help us here. For example in Head E we will calculate notional pension through Head B not Head A (my fault) as this is a mixed service case. Subject to this change, I think we can send it off to Mike Waters with the following notes:
A.
We have probably missed the deadline which would have allowed us to bring the Scheme into operation in April of next year. The PIPS computer programme will require substantial changes to it and we will have to gather a lot of data from Hong Kong on existing pensioners. I doubt very much if April 1994 is a realistic date. June 1994 perhaps? In any case, if the SPOS amendment is agreed we would want to bring it in first.
B.
The Scheme demands that we are able to identify the amount of SPOS (if any) appropriate to the Hong Kong pension in mixed service cases. We are currently looking into ways in which a fair apportionment of SPOS on two or more can be done through the consolidation of the SPOS Regs. These should be operational by April next year. If we fail to find a solution to this problem we will have to make substaintial alterations to the Scheme to accommodate this difficulty. I will keep you and Paul Fifoot informed.
I'd
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