TNAG-2100-FCO40-2989-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 33

6.

We have not yet decided whether or not to try to

conclude a POA with HKG or the Chinese. Given the existence

of the Joint Delcaration and the assurances in it over the

public sector, it seems unlikely that the Chinese, looking after the interest of the SARG, would be willing to conclude

such an agreement.

7.

The sterling safeguard for pensions issue is linked to

the so called Carr-Robertson assurance given by Mr Robert

Carr, the then Secretary for Technical Cooperation, to

Sir James Robertston, the then President of OSPA. In that

letter Mr Carr said "I am now therefore authorised to tell

you that if for any reason it should so happen in relating to the payment of a pension that a pensioner finds himself in financial difficulties, HM Government would feel obliged to take appropriate remedial action". In 1968 Sir Reginald Prentice, the Minister for Overseas Development, told the

House of Commons that the assurance "does not amount to a

formal commitment to pay loan advances (in lieu of pensions)

if there has been a default, but it has been understood

since by OSPA and by the British Government that this would

in effect happen if there was a default". We have been

expecting for some time for OSPA or an HMOCS members to ask

us outright whether HMG will abide by the Carr-Robertson

assurance. This has not occurred but to refuse to restate

the assurance would amount to saying that we no longer felt

outselves tied by it. In 1985 Ministers agreed that if

asked we would give the assurance.

8.

The question of sterling safeguards for Hong Kong HMOCS

pensions has long been taken up by OSPA both with us and

with HKG. Our mutual response has been to state that it is

a matter for the other party. This is clearly an

unsatisfactory situation.

ROZAUD/4