TNAG-2097-FCO40-2986-HM-Overseas-Civil-Service-(HMOCS)-general-correspondence-1990 — Page 81

From the Secretary of State

10

HKD

Foreign and Commonwealth Office

London SW1A 2AH

19 September 1990

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HKB 431 14

G SOCT 1990

Dear Merlyn

Thank you for your letter of 3 September enclosing

one from Mr Graham C S Smith of the Association of

Expatriates Civil Servants (AECS) which raises matters

of concern to members of Her Majesty's Overseas Civil

Service (HMOCS).

AECS ask about revising the Supplementary Pension

for Overseas Service (SPOS) arrangements. I know that

some question the way that SPOS works, but I understand

that many regard the present arrangements as satisfactory.

I have yet to be convinced that there is a sufficiently

strong case for changing them, although we shall

naturally keep the matter under review.

AECS also ask about protection against depreciation

of the Hong Kong dollar. As you know, the Hong Kong

dollar is linked to the US dollar. This link has proved

extremely resilient. It is true that the Hong Kong dollar

has declined against sterling over the past few years, but before that it had been on a strengthening trend. In

short, it is far from clear that the present arrangements

work to the disadvantage of Hong Kong pensioners: in the

long term the Hong Kon dollar/US dollar link makes for

stability and certainty.

DOUGLAS HURD

The Rt Hon Merlyn Rees PC MP

Your Dougy!