CONFIDENTIAL
B
C
It was
pensions to be paid out in that year and for HMG to pay the pensions at some fixed (agreed) sterling exchange
rate. This would leave HMG exposed to exchange rate
fluctuations and was unacceptable to the Treasury.
rejected almost as soon as it was made. We have had correspondence with Hong Kong about their apparent
misleading of OSPA on this subject. We decided not to write to OSPA as a result of themird paragraph of Mr Wiggham's Unfortunately OSPA are still labouring
letter of 11 June
under a misapprehension; or know a good stick to beat us
with when they see one. The latter is probably the case.
4. I do not think that we should say more than we already
have on this matter. I see no advantage in correcting
OSPA's understanding of what exactly we are looking at,
since in the not too distant future we hope to come forward
with a package solution. And, since the letter does not deal with compensation arrangements or the right to retire with pension in 1997, I recommend that the Minister does not
use the same form of assurance that he gave in Hong Kong in July ie that "we are in the process of drawing up
-
appropriate arrangements for members of HMOCS in Hong Kong
which recognise the change in sovereignty in 1997.'
Mikil ustre
мил
BATANF/2
CONFIDENTIAL
M V Stone
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