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Hong Kong, before and after 1997.
(b) As far as compensation is concerned, the Treasury are likely to be able to agree in principle to the sort of "incentive" scheme which Ministers approved in 1988 (ie payment of compensation by instalments from 1997, so that those HMOCS officers who stay the longest will receive the
most money).
(c) As far as sterling safeguards are concerned, the Treasury are strongly opposed to a scheme financed by HMG, because of its serious public expenditure consequences. There is no clear cut legal obligation on HMG to introduce
such a scheme.
(a) The Treasury have put forward a counter proposal which would involve HMOCS officers being able to take the value of their accrued pension rights from the Hong Kong
The transfer Government at any time between now and 1997. value would be used to purchase a deferred annuity or personal pension from a private sector provider. Kong Government have, however, rejected this proposal as unworkable, because it would be unacceptably divisive as between HMOCS and local officers.
The Hong
(e) The Hong Kong Government have put forward their own proposal, whereby HMG would take over the payment of pensions payable to all members of HMOCS; the pension paid would be at a fixed sterling exchange rate to be agreed; and the Hong Kong Government would pay HMG on a continuing basis the value of these pensions, including Hong Kong pension increases, in Hong Kong Dollars. In other words, HMG would bear the exchange rate risk.
(f) The Treasury then put forward a counter proposal to (e) above. They have suggested that, as part of an
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