26-AUG-1992 13:32
PAUL FIFOOT
0372723755
P.01/03
506
FAX TRANSMISSION
To: MICHAEL STONE
Fax no.: 071 270 3387
Hong Kong Department, FCO
Pages, including this page: 3
HKA 233/1
cc. Mr Cox
Mr Stone
те
Ь
From: PAUL FIFOOT
Fax no.: 0372 723755
Tel no.: (0372) 723755
file
ON 26/8
Date: 26th August 1992
STERLING SAFEGUARDS: CATEGORIES TO BE PROTECTED
1. Yesterday we discussed the question of whether HMG should include persons other than members of HMOCS in its proposals for sterling safeguards. Although this repeats previous advice, it will be convenient to consider here what commitments have been given, or what has been the practice, in the past about sterling safeguards and to whom any such commitments have been made or who has benefitted from such a practice.
2.
Apart from the Carr/Robertson statement (which refers Lo "security of pensions" but is lacking in anything specific), HMG have made no general commitment to any colonial pensioner which could be invoked by Hong Kong pensioners about themselves safeguarding the sterling value of a pension. Paragraph 6(2) of Colonial No.306, although il speaks of pensions being "similarly safeguarded" can only be read as providing that, as regards pensions, the overseas government shall not alter the terms of the relevant pensions laws to make them less favourable than those applying at the relevant date; it makes no commitment that HMG will safeguard pensions. In the case of Hong Kong, paragraph 6(2), read with paragraph 7, can be considered as given effect to by JD 73. Neither members of HMOCS nor any other category of pensioners to whom paragraph 12 of Colonial no.306 applies can therefore reasonably invoke that white paper as a commitment by HMG to provide a sterling safeguard for pensions. { With a limited exception for officers appointed on a sterling salary who converted to a dollar salary under the terms of a 1947 salaries revision, if any such remain, there is no sterling guarantee by Hong Kong for Hong Kong Pensions, but that limited exception would be covered by JD 73. Hong Kong Civil Service Regulations also provide for payment of pension in the currency of the country of origin of an officer; this too would be covered by JD 73.]
3. Although they have made no commitments, HMG have in practice done two things which have a bearing on the sterling value of pensions. First, they have concluded Public Officers Agreements in which the relevant overseas government has undertaken to pay pensions, when required, in countries where the pensioner lives or to which he was entitled to leave passages and to maintain the sterling valuc of such payments. Secondly, HMG has taken over the responsibility for the payment of colonial pensions at the rate in payment at the relevant time. In neither case has
Page 120Page 121
No comments yet.
Private notes are available after approval.