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Copied to P. Fufact Fract 576
AM.
361
067663
MDHIAN 6818
HKA 233/1
TOP COPY Q DIST?
FM PEKING
TO DESKBY 051045Z FCO
TELNO 792
OF 050948Z JUNE 92
INFO IMMEDIATE UKREP JLG, HONG KONG
UKREP JLG PERSONAL FOR GALSWORTHY
HONG KONG PERSONAL FOR GOVERNOR
359)
360
間
YOUR TELNO 455 AND UKREP JLG TELNO 262: HMOCS: EARLY RETIREMENT
1.
IN GENERAL WE AGREE WITH THE POINTS MADE IN 2ND TUR. WE HAVE THE FOLLOWING COMMENTS ON FIRST TUR.
2. AS WE SEE IT, THE OPTION OF USING THE MECHANISMS OUTLINED IN YOUR TELNO 425 WOULD HAVE TO BE DISCUSSED WITH HMOCS OFFICERS TO SEE IF THEY WOULD BE SATISFIED WITH THIS APPROACH BEFORE ANY
ATTEMPT WAS MADE TO IMPLEMENT THEM. WE THINK IT LIKELY THAT THE CHINESE WOULD GET TO HEAR ABOUT THE POSSIBILITY AT THIS EARLY STAGE. IF THEY REGARDED IT AS A POSSIBLE CHANGE IN 'THE PREVIOUS SYSTEM' (AND WE TEND TO AGREE WITH THE ASSESSMENT IN PARA 3 OF UKREP TUR THAT THEY WOULD) WE EXPECT THAT THE CHINESE WOULD COMPLAIN AND PROBABLY ALSO THREATEN US WITH REPUDIATION OF THE CHANGE AFTER 1997 IF WE ACTED UNILATERALLY. WE WOULD THEN BE BOUND
TO MODERATE OUR PLANS OR RISK A PUBLIC ROW WITH THE CHINESE.
SUCH CIRCUMSTANCES THERE WOULD BE NO POINT IN PROCEEDING
UNILATERALLY.
UNDER
3. IF EARLY PAYMENTS OF PENSIONS WERE MADE AND CHINA OR THE SARG STOPPED PAYMENTS AFTER 1997 (PARA 3 OF FIRST TUR) THERE WOULD UNDOUBTEDLY BE A RISK THAT THE PAYMENTS WOULD NOT BE RESUMED ONCE NORMAL RETIREMENT AGE WAS REACHED. THERE COULD BE SEVERAL REASONS ON THE CHINESE SIDE, RANGING FROM ADMINISTRATIVE INCOMPETENCE TO A POLITICAL DECISION NOT TO PAY BECAUSE THEY JUDGED US TO HAVE BREACHED THE JD FIRST BY CHANGING THE SYSTEM AND THEREFORE DID NOT REGARD THEMSELVES BOUND BY JD73.
4.
:
WE STRONGLY AGREE WITH THE VIEWS EXPRESSED IN PARA 5 OF UKREP TUR, PARTICULARLY ON THE QUESTION OF APPROPRIATING BY ORDER-IN-COUNCIL PART OF HKG RESERVES.
5.
WE FEEL THAT BOTH THE LINE IN PARA 6 OF FIRST TUR FOR USE WITH
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