CONFIDENTIAL
IS A STERLING SAFEGUARD NECESSARY?
6. The arguments which have been advanced as to why a
safeguard should be introduced are:
(a) in previous colonies such a safeguard has (almost)
always been introduced at the change of sovereignty.
is part of the package HMOCS members expect to receive.
[Comment: a strong point on which we (rather than HKG) will be picked up.]
It
(b) it is inequitable that those who have loyally served
the Crown should potentially be faced with a worthless
pension post 1997. [Comment: we cannot concede that this
is a possibility given the Joint Declaration.]
(c) Hong Kong HMOCS officers will almost all retire to
the UK. They should not be faced with pension income in Hong Kong dollars and expenditure commitments in pounds.
[Comment: there is no contractual guarantee to provide a sterling linked pension.]
(d) unless a sterling safeguard is introduced soon, currently serving HMOCS members will not have the confidence to continue up to 1997. [Comment: a strong point, already raised.]
(e) linked to (d), in order to make our proposals for a
compensation/incentive scheme viable, some guarantee that the additional payments will actually be worth something is required. Guarantee could be a sterling rate for such
payments. [Comment: a possible strong point, if it
emerges when we announce the scheme that this is a
concern.]
RODACP/4
CONFIDENTIAL
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