become worthless HMG could have to pick this up fully. Clearly it is more likely that HMG's liability would te be
considerably less than this. Broadening the picture, the
Nationality Scheme will enable about 17,000 civil servants
to obtain British citizenship and right of abode. If the HK
dollar were to collapse they could argue that they had just
as much right to a sterling safeguard as HMOCS members.
This would be easy to resist in theory (they do not meet the
criteria for HMOCS membership) but possibly not so in
reality. In the worst case scenario of a worthless HK $ this could cost £.. Million, with the liability running for
forty years.
13. Of course it is highly unlikely that the HK$ will
become worthless but this aspect needs to be considered in deciding whether to introduce a safeguard and if so at what
exchange rate.
Hong Kong HMOCS members and OSPA
14. Serving HMOCS members are concerned about the value of
their pensions post 1997. Whatever assurances there are in
the Joint Declaration, there are considerable worries that pension entitlements will not be met, either through a severe devaluation of the Hong Kong dollar or through other measures. HMOCS members will thus press for a sterling safeguard for pensions. They will also press for such a
safeguard for any compensation arrangements.
15.
OSPA have long pressed for a sterling safeguard for
existing Hong Kong pensioners. They claim that the
depreciation of the Hong Kong dollar is causing real
hardship for pensioners. They also make the point that HMOCS officers are expected to, and by a great majority do, retire to the UK. It is quite wrong that they should then
be penalised by currency fluctuations. Their case, at this
ROZAUD/6
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