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pardon, the pension or allowance to which such person would have been entitled had he not been convicted and sentenced as specified in subsection (1)(a) shall be restored to him with retrospective effect as from the date of cancellation, suspen- sion or reduction; but in determining whether any arrears of such pension or allowance are payable to such person and in computing the amount thereof account shall be taken of all moneys paid or applied under subsection (5) or, where a pension or allowance has been reduced, paid as a reduced pension or allowance.

(7) Where a person whose pension or allowance has been cancelled or suspended or has been reduced in accord- ance with a determination under subsection (3) has served any sentence of imprisonment imposed on conviction, the Gover- nor may direct that the pension or allowance to which such person would have been entitled had he not been convicted and sentenced as specified in subsection (1)(a) shall be re- stored to him as from the date on which he completes serving the sentence of imprisonment or any later date as the Gover- nor shall specify, and the pension or allowance shall be restored accordingly.";

(s) by substituting the following for section 16--

"Pension or allowance may be suspended on certain post-

retirement employment.

16. (1) The Governor may direct that any pension or allowance granted to a person shall be suspended as from such date as the Governor shall specify if such person has, within 2 years after his retirement and without the prior permission in writing of the Governor-

(a) entered business on his own account;

(b) become a partner in a partnership;

(c) become a director of a company; or

(d) become an employee,

if the principal part of such business or the business of such partnership or company or of his employment is, in the opinion of the Governor, carried on in Hong Kong, and such direction shall be forthwith notified in writing by the Secre- tary for the Civil Service to the person concerned.

(2) The Governor may specify a period of more than 2 years for the purposes of subsection (1) where he thinks fit, and such specification shall be forthwith notified in writing by the Secretary for the Civil Service to the person concerned.

(3) A person who is aggrieved by any direction under subsection (1) or any specification under subsection (2) may, within 30 days of the notification to him of the direction or specification or such longer period as the Governor may in any particular case permit, petition the Governor against the direction or specification and the Governor may confirm, vary or reverse the direction or specification as he thinks fit.