TNAG-1668-FCO40-2317-Future-of-Hong-Kong-continuity-of-administration-civil-serv-1987 — Page 109

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CONFIDENTIAL

3. ON THE QUESTION OF THE LIMITED COMPENSATION SCHEME I CANNOT FIND

AMONG THE PAPERS WHICH I HAVE AVAILABLE ANY PRECEDENT FOR A

COMPENSATION SCHEME BEING INTRODUCED BY LOCAL LEGISLATION. EITHER

THEY WERE MADE UNDER AN ORDER-IN-COUNCIL OR THEY WERE INTRODUCED

ADMINISTRATIVELY. COULD I PLEASE THEREFORE HAVE A

SAMPLE OF SUCH LOCAL LEGISLATION?.

4. BUT IN ANY EVENT, IS THERE ANYTHING WRONG WITH HAVING AN ADMINISTRATIVE LIMITED COMPENSATION SCHEME PROVIDING THE PENSION LEGISLATION MAKES ADEQUATE PROVISION FOR THE PAYMENT OF RETIREMENT BENEFITS UNDER THE SCHEME. LEGAL ADVICE HER IS THAT THIS IS IN ORDER. WE WOULD MUCH PREFER NOT TO HAVE TO INTRODUCE SEPERATE LEGISLATION PARTICULAR SINCE THE SCHEME IS TIME BARRED.

AKERS-JONES

YYYY

HMLNAN 0336

HONG KONG AGREEMENT: RESTRICTED

LIMITED

HD/HKD

HD/FED

RESEARCH D. (FE)

DEP.HD/PUSD

PS/MR RENTON

SIR. D. WILSON

MR GILLMORE

COPIES TO:

MR FIFOOT, LEGAL ADVISERS

CONFIDENTIAL