CODE 18-77
ни
Hmors porzy. Ms. Coglin 29/1/191.7
HKB
23312
2511
Reference..
FROM: D S FISH
(GTN 7 7243 3444)
DATE: 18 January 1991
Mr Stone
We spoke about Frederick Watson's letter of 17 December to Lord Caithness.
2. It is, of course, very difficult to provide a response with which either we or Mr Watson can be happy. But I do think that we need to make the point that the basic pension is the responsibility of the Hong Kong Government. It is tempting to respond on the question of relative salary levels but this might provoke a further furore. At some stage I am sure that we shall have to point out that UK pensions increase legislation is designed to put colonial. civil servants on a par with their UK counterparts. It is no part of the function of this legislation to protect the value of pensions which are far in excess of those enjoyed by UK public servants. The high Hong Kong salaries might be a necessary feature of life in the Colony but we are talking about people who normally retire to the UK and have to cope with UK prices and inflation.
༢༣.
All in all, given that we are unlikely to make much early progress in the current political climate, it would probably be best simply to acknowledge the problem faced by some post-1976 pensioners, and continue with the less than reassuring line that HMOCS matters generally are under review.
Бори
D S FISH
Overseas Pensions Department 18 January 1991
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