TNAG-2096-FCO40-2985-HM-Overseas-Civil-Service-(HMOCS)-general-correspondence-1990 — Page 121

provides for a considerable degree of stability and certainty

to people receiving payment in Hong Kong dollars. The value of

the dollar does fluctuate against the £ sterling but, at

present exchange rates, and taking into account the levels of

Hong Kong salaries, Hong Kong pensioners are doing reasonably

well, certainly in comparison to their UK counterparts. In

these circumstances, and with no prospect of a collapse in the

value of the Hong Kong dollar in view, I do not think it is

necessary to contemplate introducing any exchange

protection at this stage.]

rate

Then EITHER (as in your draft) [As to the future, it would be

for the Government of the day to decide what action it would be

right to take in any given set of circumstances. Their

considerations would clearly have to have regard to the special

position of HMOCS members, which successive governments have

acknowledged.]

OR

However, we intend to keep the situation under review and,

as with pensions related matters generally, HMOCS staff should

be reassured by the knowledge that HMG will not shirk their

responsibilities. If the situation warrants it, HMG will take

appropriate action.]

as many

In the event that we do not have a POA for Hong Kong we would

expect to cater for the legitimate concerns of HMOCS staff by

other means. We are particularly concerned to encourage

HMOCS staff as possible to stay on after 1997, and we recognise

that if we are to achieve this objective, it will be necessary to

offer some form of financial incentive and also to provide staff

with certain assurances about their future superannuation

benefits. We are not yet in a position to say what financial

incentives might be offered but we hope to be able to say more

later in the year.

}

In the past arrangements for the award of compensation were made

separately from a POA. The Hong Kong Government already has in

place a limited compensation scheme to cover a small number of

expatriate officers whose promotion is blocked by localisation or

3.