TNAG-2421-FCO40-3523-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 41

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Hong Kong Persion Contingency find.

Reference

HKG to make annual payments into the fund. Amount to be decided each year in light of fiscal position, but target, HIC $4 bn at 1992 prices.

Shiny

fund to be managed by Exchange fund Office: say 50% to be invested off shore.

Fund shd make transfers to Cheral revenue, up to say 50% of any year's persions payments, if :

(a) there is

sand

an economic / fiscal down-turn of a specific scale, eg comemor GDP growth dropping below 1 2% revenue from existing takes dropping by more than say 5% from one year to the next RPI inflation out-stripping

>

GDP growth by more than x; and for

(G) the trangfer is approved by

a majonty of the fund Board of Dulctors (how to be appointed? including civil service staff association reps ?)

conveste

Any way of building in exchange-rate protection ? All funds to be held in us dollars and pensioners to be able to elect to receive up to 25% of pension to us dollars at $7.80: $1 (ar such lower percentage of covered by the previous year's growth of the Fund) ?

as could be

subsequent

Or fund to cover only commutable sums? or only rece

only recurrent payments?

CODE 18-77

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