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6. General Compensation Scheme
Her Majesty's Government have made it clear that the transter of Government in 1997 raises issues regarding Her Majesty's Overseas Civil Service that are similar to those raised in other dependent territories at independence. The question of a general compensation scheme will have to be addressed at the appropriate time.
7.
Sterling Safeguards 1997
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In other cases,
We see no need for decisions at this stage. this question has been settled much closer to the time of
constitutional change.
8.
Sterling Safeguards now
We are aware that the recent depreciation of the Hong Kong dollar along with the US dollar has had an impact on the value of pensions. But it would be wrong to determine policy on the basis of short term trends. The link between the Hong Kong and the US dollars which was introduced in 1983 provides stability over the long term. I am therefore not persuaded that, overall, the present arrangements work to the disadvantage of the Hong Kong pensioner. Furthermore, the Hong Kong Government awards annual pension increases based on movements in the Consumer Price Index in Hong Kong. These afford a measure of protection to the extent that exchange rate movements are reflected in the Consumer Price Index.
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