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confidence. It would be unreasonable to expect a new Governor to have to cope with this. The present Governor has advised that inaction would lead to the departure of key expatriate officials and police officers and the attrition
of morale among those who remain. Moreover the issues are
likely to be brought to a head publicly over the next month by the consultations on compensation.
7
The new Governor will have a hard task. He must be able
to rely on the commitment of the expatriate core of the Administrative Service and Police.
Treasury officials seem
grudgingly to accept that at the end of the road HMG would
have to step in to support HMOCS pensioners: but they resist the political logic of our grasping the nettle now and getting some credit for it. There is now a strong case for early Cabinet decisions.
SPOS
8.
A sterling safeguard will not be effective until 1 July 1997. Meanwhile we need to change the operation of the UK Supplementary Pension for Overseas Service (SPOS) ie the
supplements paid to existing pensioners under UK Pensions
Legislation to take account of UK inflation. Mr Mellor
accepted that the present system was inequitable, but we agreed to de-link this question from compensation and to take it at the same time as sterling safeguards, The draft minute therefore includes a marker on the point.
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PF Ricketts
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for M. Patten. Andaus dures 24/iv
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