TNAG-2293-FCO40-3305-Official-visits-from-Hong-Kong-to-China-1991 — Page 4

VISIT TO HONG KONG WITH TREASURY AND GAD REPRESENTATIVES

6-13 DECEMBER 1991

1. The main purpose of the visit was to assess the possibility of capitalising Hong Kong HMOCS pensions, and to consider any alternative options which would minimise the financial risk to HMG of a proposal that members of HMOCS should be offered a sterling safeguard to protect the future value of the pensions. The visit took place following a formal FCO/ODA approach to the Treasury on a package of measures aimed at Hong Kong HMOCS_ officers (past and present), and against a background of a s fundamental disagreement about whether HMG has any commitment to

HMOCS officers.

V

there

being no statutory

2. I had no doubt that there was a strong moral commitment on the part of HMG to safeguard the interests of HMOCS officers, but well appreciated the Treasury belief that it should be for Hong Kong to fund any protection arrangements which might be thought necessary. The Treasury view was that it was doubtful whether

any protection WAS justified commitment on the part of HMG but in any case the Hong Kong

Government was well able to meet any costs

any costs which might be- involved. However, the Hong Kong Government had made it clear that they would not make special arrangements for HMOCS officers

because it would lead to claims for similar treatment for the

much larger number of local staff.

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3. The Treasury did not feel that the FCO had pursued Hong Kong Government with sufficient vigour on this matter with the result that they were invited to investigate the position at- first hand. Hence the visit of team consisting of Sandra Brown, Treasury Expenditure Division, Donald Rayson, Head of Treasury

Superannuation Division, Grant Ballantine, Directing Actuary on Superannuation. The Treasury members had been given a clear

to work up, and press for, a:

brief

from their Ministers

1.