TNAG-2269-FCO40-3268-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1991 — Page 196

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p.a. pls g/10 - 8 OCT 1991

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FROM: P F Ricketts

Hong Kong Department

DATE: 8 October 1991

cc: Sir J Coles

Mr Muir

Mr Crystal, News Dept

Mr Cox o/r

Mr Burns

PS/Lord Caithness

UPDATE ON HMOCS MATTERS

Mr Stoya 9/10. Ms Williams @w3/10

?

h

Thanks. See to land

Gitteess

1. Lord Caithness might be interested in an update on where

we stand on HMOCS issues.

9/0.

Correspondence with the Treasury

-

a

2. Mr Burns wrote to the Treasury on 13 September, setting out our package of three proposals compensation/incentive scheme providing limited compensation for up to eight years but no early payment of pension, a sterling safeguard for pensions, and amendments to the regulations governing Supplementary Pensions for overseas Service (SPOS) to make them more equitable. The Treasury have replied asking for more statistics. The ODA hope to provide the answers within the next couple of days. The Treasury say (predictably) that they are not persuaded by the arguments for a sterling safeguard and that they will want to discuss with us alternative approaches, including those involving the transfer of assets and liabilities to HMG. But the letter was as positive a response as we could have hoped for. The Treasury will argue that Hong Kong should pay: our contention is that this is politically out

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