TNAG-2426-FCO40-3528-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 107

K.BẸP JLG HÙNG KÙNG.

THE O JUL

CONFIDENTIAL

7 UTUS

455

M Sze Esq

HKA 283/1

M in flyve Thank

secretary for Constitutional Affairs17

3rd floor

Central Government offices

IT is a

wide scheme

Yes; No HMors relevence.

Community for employers and employees to pay into provident Funds (Not run by HKG (tink), I can't really see a

for partial ред

Dea Michael,

hunding.

Office of the

British Senior Representative Sino-British Joint Liaison Group

I also thinks Galsworthy is over reaching: There has seen this for years and it Hica imple cations

N's 10/7

Lebate ou

RETIREMENT PROTECTION

1.

has no

9 July 1992

No HMOCS relevance I think. as aimed at providing pensio.. for those whose employers do out provide one

in fox

Mr Stone

aut

present. (But it might

perhaps give

a pess partial funch

W3

12 Curl Sem

Arm alle whet versions

He scheme with de?

in

Mmors relevance ? 9/v

We were very grateful to Nigel Whitney for showing us a copy of the draft ExCo memorandum on the public consultation paper on retirement protection.

2. As I told you on the telephone today, my first reaction on reading this was one of some horror. This is obviously a major change to the system by any standards, and has some pretty important long term implications, both for social security and

for the SARG finances.

3.

Clearly it is not going to be possible to avoid dealing with the Chinese over this because of these long term implications. It also looked to me as though there was quite a lot in this which would be controversial in terms of higher costs to employers and money being taken out of employees' pockets.

4.

In normal circumstances I would guess that the Chinese machine would be very reluctant to grapple with anything as complex as this and on such a scale. The gut reaction would be that we have lived with the present system for goodness knows how long, and it is only five years before the SARG takes over, and that it should be left to the SARG to take a decision on whether or not such a scheme should be implemented. We could easily find ourselves in the same situation that we found ourselves in on RTHK.

CONFIDENTIAL

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