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applicable to Hong Kong; and
(c) that we seek the Governor's personal view on whether HKG cůld make over to HMG the capitalised amount needed
to meet HMOCS pension entitlements earned up to 1997.
Background
3. In 1985 Sir G Howe minuted to the Prime Minister on a
number of HMOCS issues. The conclusions, endorsed by OD (K)
colleagues, were as follows:
(a) We should aim for arrangements whereby HMOCS officers in Hong Kong are eligible for compensation from local revenue. We should proceed to discuss these with the
Hong Kong Government. [Estimated maximum cost is a one-off payment of £25 million at current prices and
exchange rates.]
(b) We should aim to negotiate safeguards for the
sterling value of pensions earned under HMOCS up to 1997,
the cost being met by the Hong Kong (SAR) Government.
Further study should be given to the nature and timing of
such safeguards, and there should be discussion with the
Hong Kong Government. [Estimated cost, on worst case
assumptions, is £10.5 million per year.]
(c) If specifically pressed, Ministers should reaffirm
HMG's previous assurances that the Carr-Robertson
assurances on payment of advances in lieu of pensions to
HMOCS officers in the event of a pensions default apply
to HMOCS in Hong Kong as elsewhere. Pressure for similar
assurances for local officers should be resisted.
[Estimated cost is £10 million per year at current prices and exchange rates, and excluding widows' pensions.]
ROZAUD/2
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