TNAG-2096-FCO40-2985-HM-Overseas-Civil-Service-(HMOCS)-general-correspondence-1990 — Page 45

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CONFIDENTIAL

CONFIDENTIAL

FM FCO

TO PRIORITY HONG KONG

TELNO 1869

OF 14093OZ SEPTEMBER 89

FILE COPY

025054

471

FOR WILLIS CSB FROM STONE HKD

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YOUR TELNO 2991: POLICE FORCE COUNCIL: PENSION SAFEGUARDS

1. WE DO NOT THINK THAT WE CAN GO FURTHER THAN THE GENERAL STATEMENTS WHICH WE HAVE ALREADY MADE, WHICH ARE TO REITERATE THAT :

- THE JOINT DECLARATION STATES THAT PUBLIC SERVANTS PREVIOUSLY SERVING IN HONG KONG IN ALL GOVERNMENT DEPARTMENTS INCLUDING THE POLICE, MAY ALL REMAIN IN EMPLOYMENT AND CONTINUE THEIR SERVICE WITH PAY, ALLOWANCES, BENEFITS AND CONDITIONS OF SERVICE NO LESS FAVOURABLE THAN BEFORE.

THE JOINT DECLARATION ALSO PROVIDES FOR THE SARG TO PAY ALL PENSIONS GRATUITIES, ALLOWANCES AND BENEFITS DUE TO THEM ON TERMS NO LESS FAVOURABLE THAN BEFORE AND IRRESPECTIVE OF NATIONALITY OR PLACE OF RESIDENCE.

WE HAVE NO REASON TO BELIEVE THAT THE SARG WILL DEFAULT ON PENSIONS.

2. WE WOULD ALSO OBSERVE THAT HKG'S RESERVES ARE SUBSTANTIAL. WE WONDER WHETHER YOU WILL NOT INFACT COME UNDER GREATER PRESSURE (GREATER THAN HMG TO UNDERWRITE) TO FUND THE PENSION SCHEME BEFORE 1997.

MAJOR

A: SCS

D:

mw

P(SR) CSB

CONFIDENTIAL

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CS.B. C

No.

EGISTRY

RECEIVED

INWARD

C

*

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