CONFIDENTIAL
075330,
MDHIAN 5622
HMOCS PENSIONERS. THIS GROUP IS CONCERNED WHOLLY WITH STERLING SAFEGUARDS. AGAINST THE BACKGROUND OF THE VAGUELY COMFORTING NOISES WHICH HAVE BEEN MADE TO PENSIONERS IN PARTICULAR TO THE EFFECT THAT THIS IS A PROBLEM WHICH NOW NEEDS TO BE ADDRESSED, A DECISION NOT TO DO ANYTHING WOULD GO DOWN VERY BADLY. OSPA WOULD LOBBY MPS AND ATTEMPT TO GET PARLIAMENTARY QUESTIONS ASKED. LOCAL ASSOCIATIONS REPRESENTING HMOCS PENSIONERS OR PUTATIVE PENSIONERS WOULD ALSO LOBBY MPS. THE ISSUE WOULD BECOME PUBLIC, AND THE QUESTION WOULD BE RAISED AS TO WHY HONG KONG HMOCS OFFICERS WERE BEING DENIED THE PROTECTION GIVEN TO THEIR FELLOWS IN EVERY OTHER FORMER BRITISH DEPENDENT TERRITORY.
5.
WE DO NOT THINK THAT IT WOULD DO ANY PARTICULAR GOOD TO REAFFIRM THE CARR ROBERTSON ASSURANCE. INDEED TO DO SO COULD BE COUNTER-PRODUCTIVE. OSPA IS WELL AWARE OF THE ASSURANCE, AND THAT IT WOULD ONLY BE INVOKED IN A DISASTROUS SITUATION E.G. ADEN AND ZANZIBAR. A PROMISE TO KEEP THE MATTER UNDER REVIEW WOULD ALSO DO LITTLE TO REDUCE THE DISAPPOINTMENT. THE IMPROVEMENT TO SPOS WOULD BE SEEN AS A POSITIVE STEP, BUT WOULD NOT REDUCE THE PRESSURE FOR STERLING GUARANTEES.
6
A POINT WHICH IS ALSO WORTH MAKING, OF WHICH WE ARE ALL AWARE BUT WHICH TENDS TO BE OVERLOOKED, IS THAT THE INTRODUCTION OF STERLING SAFEGUARDS WOULD NOT NECESSARILY COST HMG ANYTHING. IT WOULD MEAN THAT HMG HAS TO ASSUME A POTENTIAL LIABILITY. BUT IT WOULD ONLY HAVE TO DISCHARGE THIS LIABILITY IF THE COMMITMENT IN THE JOINT DECLARATION TO CONTINUE TO PAY PENSIONS ON EXISTING TERMS WERE NOT HONOURED OR IF THERE WAS A SUBSTANTIAL DECLINE IN THE VALUE OF THE HONG KONG DOLLAR. IN EITHER OF THESE EVENTS, THE SITUATION WOULD BE LIKELY TO BE SO BAD THAT THE CARR ROBERTSON ASSURANCE WOULD COME INTO PLAY AND HMG WOULD BE PRESENTED WITH A LIABILITY WHICH IT COULD NOT ESCAPE IN ANY CASE.
7. OUR OVERALL ASSESSMENT IS THAT A REDUCED PACKAGE MIGHT BUY A LITTLE TIME, BUT THAT IN THE NOT TOO DISTANT FUTURE ALL THE EXPECTATIONS (OR RIGHTS, AS THEY THEMSELVES WOULD PUT IT) OF HMOCS MEMBERS IN HONG KONG WILL HAVE TO BE ADDRESSED.
WILSON
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