As you will observe from the references cited below, namely 12/22/70, 220/70, and 12/14/74, - 7621/73; 216, 128748/73, 3814, I would suggest that the foregoing correspondence should be drawn to his attention, and that he should be told that the Legislative Council has considered the question of introducing a Pension Minute. This refers to the rule proposed in the 9th paragraph of his despatch 1123/75, and in the 2nd paragraph of his despatch testing, however, that Donald should draw attention to the last sentence in paragraph 3 of his despatch 216, 12848/73, which states that "if a pension is granted" (to Chinese employees) it is not necessary to revise the existing procedure accordingly at the Treasury.

I am aware that a pension system has been adopted in Ceylon, the Straits, and Mauritius, between 1868 and 1876.

MINUTE PAPER.

Critics and supporters alike have referred to the sense of their pensions; and, although the existing pension rules have been in force for some time, it seems necessary to proceed with caution, lest we should deprive officials of rights which have been recognised there, although similar rights were not contemplated in Hong Kong.

If it is thought right, perhaps it might be desirable to send, in the first instance, to Ceylon, the Straits, and Mauritius, extracts or copies of the correspondence with the Governor regarding the proposed introduction by Hong Kong of pension rights or benefits for Chinese employees, and to note the reactions of those colonies.

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