Mr Bu
Fam
CONFIDENTIAL
FROM: J C Morris
Hong Kong Department
DATE: 26 July 1993
cc: PS/Baroness Chalker
PS/PUS
Sir J Coles
Mr Muir
Mr Kirby, ODA Miss Brooks,
Legal Advisers
Mr Fish, ODA RMD
PS/Mr Goodlad
Private Secretary
HONG KONG: ARRANGEMENTS FOR MEMBERS OF HER MAJESTY'S OVERSEAS
CIVIL SERVICE (HMOCS)
1. I submit a brief setting out the latest position on the proposed package of benefits for HMOCS and points for the Secretary of State to make at his meeting with the Chief
Secretary on 29 July.
2. In further discussions with Treasury officials, we have
agreed on the broad outline of an HMOCS Compensation Scheme
(which would cost around £39 million) but have not been able to persuade Treasury officials to recommend a rate of HK$16: £1 for the sterling pension safeguard. I think it is likely that at
the meeting on 29 July, Mr Portillo will offer HK$22:£1 for the
safeguard (on grounds that it would provide parity between UK and Hong Kong civil servants' salary levels) and will resist any attempt to change the existing SPOS mechanism.
3.
We have consulted the Governor. He can accept a
compensation scheme along the lines proposed, but remains convinced that a pension safeguard of HK$16: £1 and the SPOS
amendment are essential if the package is to be accepted by
HMOCS.
gdl.min.ADM
SLM
CONFIDENTIAL