TNAG-2050-FCO40-2920-Visits-by-Lord-Caithness--Minister-of-State-for-Foreign-and--1990 — Page 74

continued payment of pensions after 1997. There is no

reason to believe that this undertaking will not be honoured

by the future SAR Government. Pensions payments represent only a very small percentage of annual recurrent expenditure

and the Hong Kong Government have every confidence that

future pension payments can be met.

Nevertheless, the Hong Kong Government are considering

whether any further measures can be taken to address the

concerns expressed by your members and other civil service

staff associations. While full funding of pensions has been ruled out for financial reasons, careful consideration is

being given to other possibilities, including partial funding of pensions, higher commutation of pensions and the establishment of a provident fund.

MATAAG/3

Peter Tibber

Private Secretary to

Earl of Caithness