On the
(ii) On the question of the supplementary pension for overseas service (SPOS), I know that the arrangements are considered by some to be inequitable. But I believe that the majority regard them as satisfactory. I am not convinced that there is a case for changing them, although we naturally keep the matter under review. question of fluctuating exchange rates, we see no present justification for contemplating any sterling link or safeguard for pensions. The Hong Kong dollar link with the US dollar has proved extremely resilient. Hong Kong pensioners continue to do reasonably well, certainly in comparison with their UK public service counterparts and with HMOCS staff in receipt of pensions from other territories. The US dollar/pound rate has certainly fluctuated but I do not believe that the fluctuations have led to cases for hardship. The Hong Kong Government have stated that if hardship cases were to arise, they would propose to ExCo that a small fund be
example for established to provide one-off payments (for funeral expenses or a
A wheelchair) to pensioners in distress.
(iv) We fully appreciate the concerns of HMO CS members about their position after 1997. We are giving very careful thought to how we can meet them. We are not yet in a position to make an announcement
but intend to do so as soon as possible.
(v) It is true that a small number of very senior posts will be reserved for Chinese nationals. It was always envisaged that this would be so and the Joint Declaration makes this clear. The Hong Kong Government have instituted a limited compensation scheme which will provide appropriate compensation if it becomes necessary for expatriate officers to retire early or to be passed over for promotion to facilitate localisation. I believe the Hong Kong Government have considered this area very carefully and
sympathetically and the position of expatriate officers who may be so affected has been fully taken into account.
Francis Maude
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