TNAG-2059-FCO40-2937-Hong-Kong-Overseas-Service-Pensioners--Association-(OSPA)-1990 — Page 61

OFFICE OF THE CHIEF SECRETARY GOVERNMENT SECRETARIAT

HONG KONG

9 April 1990

Dear Clvyn,

Colk

куп

Thank you for your letters of

27 February and

12 March.

(

On the question of currency protection of the pensions for HMOCS members, there is indeed still considerable difference of opinion between HMG and HKG. The position of the Hong Kong Government remains that

(1)

(ii)

(iii)

(iv)

HKG's responsibility, as the employer, is to pay its staff salaries

salaries and pensions in Hong Kong Dollars, and to maintain the value of pensions by adjusting them in line with the cost of living locally;

It is also Government's policy to treat both local and overseas officers equally in the payment of pensions. Any special arrangements for expatriates would be highly divisive and would cause serious problems with the civil service;

There remain the fundamental difficulties which led to the ExCo decision in January 1989 that there should be no measure to protect the value of pensions against currency fluctuations at this stage. If anything, such difficulties have increased; and

HMG has accepted a special obligation towards members of HMOCS and ExCo therefore considers the question of sterling safeguards for them a matter for HMG. We see no possibility of a change in this position.

Mr Colvyn Haye, CBE,

"Wymering",

Sheet Common,

Nr. Petersfield, Hants GU31 5AT United Kingdom

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