TNAG-2101-FCO40-2990-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 158

no!!

-

3

CONTAL

5.

Under the proposed

arrangements HMG will need to

top up che pensions if the sterling exchange rate falls

below

the agreed rate and the Hong Kong inflation increases are insufficient to cover the exchange loss and UK together. However, HMG will normally gain

inflation taken

if she steriing

exchange rate rises above the agreed rate

or if the Hong Kong inflation increase exceed the amount rate loss and the UK inflation adjustment

of the exchange

taken together.

1

CONFIDENTIAL