TNAG-2397-FCO40-3484-Hong-Kong-Civil-Service-policy-1992 — Page 31

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HKA 016/1

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FM FCO

TO IMMEDIATE HONG KONG

TELNO 1635

OF 171514Z NOVEMBER 92

INFO PRIORITY UKREP JLG HONG KONG

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060172

MDHOAN 4337

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YOUR TELNO 2704: MEETING WITH HONG KONG CHINESE CIVIL SERVANTS ASSOCIATION (HKCCSA)

1. MORRIS AND WHITNEY (HKD) MET WITH THE PRESIDENT, MR WONG, AND SECRETARY GENERAL, MR TANG OF THE HKCCSA ON 16 NOVEMBER. MR GOODLAD HAS ALSO AGREED TO MEET THEM ON 19 NOVEMBER (SEE PARAGRAPH 5 BELOW).

2.

WONG GAVE US A COPY OF HIS SPEAKING NOTE: THIS IS BEING FAXED TO WATERS (CSB).

(CSB). HIS MAIN POINTS WERE AS FOLLOWS:

THERE IS LACK OF CONFIDENCE AMONG CIVIL SERVANTS ABOUT THE PAYMENT OF THEIR PENSIONS AFTER 1997. THIS COULD SERIOUSLY UNDERMINE THE UK'S ABILITY TO ADMINISTER THE TERRITORY EFFECTIVELY.

CIVIL SERVANTS HAVE A LEGITIMATE RIGHT TO EXPECT THE BRITISH HONG KONG GOVERNMENT TO SAFEGUARD THE PAYMENT OF THEIR PENSIONS A CIVIL SERVICE PENSION RESERVE FUND SHOULD BE SET UP BEFORE 1995. THE SET ASIDE SHOULD BE EQUIVALENT TO FIVE YEARS EXPENDITURE ON PENSIONS AND SHOULD BE TOPPED UP EACH YEAR. WONG SAID HIS ASSOCIATION ESTIMATED THE INITIAL COST AT DOLLARS 25 BILLION, BUT HKG'S ESTIMATE WAS DOLLARS 15 BILLION

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THE ISSUE OF CIVIL SERVICE PENSION SAFEGUARDS SHOULD BE PUT ON

THE AGENDA FOR THE NEXT JLG MEETING

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- WHEN THE ASSOCIATION MET WITH LU PING IN OCTOBER LU FULLY SUPPORTED THE PROPOSAL AND HAD SAID THAT THE CHINESE WOULD NOT SEE IT AS A LACK OF CONFIDENCE IN THE FUTURE SAR GOVERNMENT. THE CHINESE WOULD PUT IT ON THE AGENDA FOR THE NEXT JLG

THE DELEGATION HOPED TO RETURN TO HONG KONG WITH A GUARANTEE THAT HMG WILL URGE THE HKG TO TAKE CONCRETE MEASURES TO SET UP A FUND AND TO ASSURE CIVIL SERVANTS OF THIS FACT BEFORE THE DEADLINE TO TRANSFER TO THE NEW PENSION SCHEME HAS PASSED

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