cst.ps/dr/8dm18.3
File
CONFIDENTIAL
My Stork 2013 cary"
Mr fox dır
Ive should discuss mill-
Mr Burns on 23 Marel
CHIEF SE
THE TREASURY
SECRE
ARY
TO
in Ricketts
AKD
By PS
Treasury Chambers. Parliament Street SWIP
071-270 3000 HKA 23311
Fax 071-270 5456
The Rt Hon Douglas Hurd CBE MP
Secretary of State for Foreign Affairs
Foreign & Commonwealth Office
King Charles Street
London
SW1A 2AH
19 March 1992
142
PS/ Lord Caithness PSIPUS
Sxi J. Coles 3AG
Mr Burns
Mr Muis
Heads ERD
Nenis (perso
Special Adorizers
anek Practic
19/3
De Rulas,
HONG KONG:
HMOCS PENSIONS
Thank you for your minute of 11 March.
∙W32
2. I was disappointed to learn that Malcolm Caithness did not use the formula on pensions and SPOS which I suggested, and that he preferred to say nothing on these questions when announcing that consultations about a compensation scheme would start shortly. As you know, I viewed the 'say nothing' course as a second best to placing the onus clearly on the HKG to find a solution to HMOCS concerns about pensions.
3. We were reinforced in this view when we saw Hamish MacLeod's considered statement, in the context of the Hong Kong Budget, that the HKG projected accumulated fiscal reserves of HK$71.6 billion in July 1997.
4.
As you will recall, while the HKG accepted in principle that our proposal that they should capitalise the discounted present value of HMOCS pensions was affordable for them, they had invariably cited as a significant constraint the best endeavours undertaking to leave the SARG with reserves of HK$25 billion in 1997. It is clear from the recent Budget statement, however, that the HKG projects having at its disposal, and handing over in 1997 to the SARG, very substantially greater resources than the earlier undertaking would imply.
Page 195Page 196
No comments yet.
Private notes are available after approval.