CONFIDENTIAL
"HMG are conscious of their responsibilities in relation to public service pensions. Annex I to the Joint Declaration states
HMG are confident that this
arrangement provides full security for the payment of pensions to both service and retired civil servants and their dependents."
"HMG's responsibilities are clearly to see that adequate arrangements are made in the agreement for the payment of pensions earned in the service of the Crown."
"As to the future, it would be for the Government of the day to decide what action it would be right to take in any given set of circumstances."
4.
In 1985 the Foreign Secretary argued that we must aim to set up arrangements for HMOCS comparable to those set up previously in territories moving to independence, notably:
compensation (estimated maximum cost £25m at 1985 prices) sterling safeguards for pensions (estimated worst case cost £10.5m p.a.)
"In
He argued that policy should be for HKG to finance these arrangements before 1997 and the SARG thereafter. default of this there would be pressure on HMG to finance the arrangements themselves. This should be resisted as long as possible, but in the last resort the liabilities are not so large that it would be impossible for HMG to take them on". He also proposed that:
(a) if specifically pressed, Ministers should reaffirm the Carr-Robertson assurances (ie HMG to pay advances in lieu of pensions in the event of a default) and,
NC3AAC/2
CONFIDENTIAL
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