Mr. Carter
Reference.... HKK 18/35
17
You will wish to see the minute which Mr. Fairclough has addressed to Mr. Morgan about the pensions policy issue. Mr. Fairclough has been in a sense representing all the independent territories in this matter with the exception of Hong Kong.
Mr. Fairclough has somewhat over simplified the Hong Kong problem. On the other hand Mr. Morgan has now seen (13) so that he will realise that the sentence at X does not fully cover our difficulties.
It is true that I suggested that our difficulty would best be met by excluding all independent territories from the scheme until they came to independence. I am told that this does not take full account of the difficulties experienced with Fiji and indeed this may be the case. But in so far as we would never allow the financial affairs of ap dependent territory to deteriorate so far that they could not meet their expartfiat pensions liabilities, I am doubtful whether the problems with the other dependent territories which might arise from their exclusion could be as great as they potentially are for Hong Kong if they were included.
0.D.M. are searching for a formula which will allow the inclusion of independent territories without embarrassment for us.
If they coulé do so, all well and good. My only suggestion is that the statement should refer to the readiness of H.M.G. to provide budgetary aid for any independent territory in financial difficulties as a result of the
Expatriate Pensions Bill. Indeed this would be no new commitment and it might be possiblesto phrase the announcement as to let Hong Kong off the hook.
I have briefly considered Mr. Fairclough's suggestion that we might use the fact that Hong Kong, Bermuda and Bahamas we do not participate in 0.S.A.S. I doubt whether there is a way out here. Hong Kong officers do not draw 0.S.A.S. allowances because the territory has so much money. On the other hand the general undertakings of 0.3.A.S. certainly relate to Hong Kong staff and we would be in trouble if any formular suggested that they do not.
I think we can wait until Mr. Morgan addresses us, as he will no doubt do a s a department. I have asked 0.D.M. to send us our own copy of the wording of the formular they are considering.
Mu✓
H.H. Stewart
19 November, 1969.
M I have now made some progress
(a
и
or possibles to) in discussion
a
with
In harshall, P.1.0.D, which I would leich to explain Mukur 19/1
ика
No comments yet.
Private notes are available after approval.