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CONFIDE
On
uncertainty of any repayments being made after 1997, would mean that the scheme almost certainly would not be a starter for local staff. However, the position could be different for HMOCS staff in that HMG might agree to underwrite/adapt the scheme in a manner which a bank/insurance company would find acceptable. further reflection, I suspect that nothing will come of it. The lump sums are likely to be considerably less than the capitalised value of the accrued pension rights, even if the arrangement could be extended to cover both the commuted element and the pension itself; the administrative arrangements would be highly complex and the Chinese would be very suspicious of an arrangement which led to a significant movement of capital from Hong Kong. The Actuary also had little confidence that this avenue would lead anywhere but it is all the Treasury have and they intend to press it as far as possible. The Hong Kong Government have agreed to share the consultant's report with us but in the meantime the Treasury will discuss the possibilities with the Bank of England.
VIEWS OF HMOCS STAFF
15.
Of all the HMOCS cadre, the Police were the most militant on the question of compensation and sterling safeguarda. But it was clear from our meeting with both the Association of Expatriate Civil Servants (AECS) and the newly formed HMOCS Committee that there is widespread frustration at the lack of progress on these issues, and that it will not be long before they feel the need to take positive action to protect their interests. They require an early indication of what is in store for them so that they can plan their futures and, of immediate importance given the June 1992 deadline, so that those that have not already done so can make their option whether to join the new pension scheme.
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