TNAG-2101-FCO40-2990-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 195

CODE 18-77

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CONFIDENTIAL

Reference

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BRIEFING ON CIVIL SERVICE PENSIONS: SPEAKING NOTE FOR USE WITH THE CHINESE

16

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1. The main subject areas covered on the note are the various proposals put forward by staff associations to ease their worries on whether or not pension benefits will in fact be paid and a number of proposals designed to improve the existing provisions for pension benefits. In general I think the paper is unobjectionable although it does use some very straight talking presumably purposefully. Paragraphs 6 and 7 on page 3 are relevant here.

2.

As regards the various pension safeguard proposals, since the Hong Kong Government have not indicated that they intend to accept any of the suggestions from the staff, I do not think the Chinese will be terribly concerned at this stage. They are much more likely to be asked to be involved should the Hong Kong Government decide to make any major changes to the way pensions are dealt with.

3. The only area where the Chinese might raise concern is in paragraph 20 where it is proposed that pension adjustments be made a statutory right. The paragraph argues the case fairly logically and of course pension increases are a right in the UK. I think the Chinese will realise that if they were to make an issue of this, it might be taken very amiss in Hong Kong.

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4. I suggest that in replying to Hong Kong telno 3081 we say that we are content with the speaking note but that we would wish to receive the Treasury forecast referred to in paragraph 5, staff suggestions referred to in paragraph 7the proposals on dependent pension benefits referred to in paragraph 16, all of which were not attached to the fax.

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25 October 1990

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M V Stone

Hong Kong Department WH311

270 2651

CONFIDENTIAL

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