CONFIDENTIAL
HONG KONG
20.
Hong Kong problem is unique in so far as there is no prospect of the Colony attaining independence and the pensions problem is accordingly not restricted to overseas pensions. The key question here is what arrangements should be made to safeguard the Hong Kong public sector pensions when Hong Kong ceases to be a viable entity in itself. The lease on the New Territories expires in 1997 but no one can be assured that the
In this connection it is Colony will not be absorbed or nullified by China before then. necessary to be mindful of the unresolved Shanghai Kunicipality pensions default by China and the prognosis of no satisfactory settlement.
21.
As regards the proposed HMG take-over of oversea pensions Hong Kong does not need the economic assistance which the relief of the expatriate bill would bring about and, if it were done, there would still remain the much larger and orucial problem of the remant, unsecured pensions.
22. The total public sector accrued pensions bill in Hong Kong amounts to about £33 million and it is considered that Hong Kong must be regarded as exceptional and
The most obvious approach is to alternative ways of protecting the pension considered. fund the pensions and the fund to be established externally. Confidential exploratory but in the end unproductive discussions did take place with the Hong Kong Governor some time back and these might be resuscitated as a starter to a new initiative.
NEW HEBRIDES
23. There is no problem over the pensions of the British Service in New Hebrides: they are provided through BSIP pensions laws and will be met as if they were BSIP pensions.
24. There have however been discussions with the French about a pension scheme for the Condominium Service and agreement has been reached for the new scheme to become operative shortly. The FCO PIO Dept have been asked to comment on the feasibility of and need for HMG to revise its approach to the new scheme in the light of the take-over but the advice is not yet available. This is a small problem and has not real significance in the broad policy considerations.
CONCLUSION
25. The balance of opinion produces the following:
&.
INCLUSION
India
Pakistan
Sudan
Bahamas
Bermuda
Brunei
b. EXCLUSION
Burma
Egypt
Israel
Jordan
Federation of Rhodesia and Nyasaland (CAFF)
Federation of The West Indies
3
CONFIDENTI AL
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