TNAG-2427-FCO40-3529-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 189

Mer Matia

Pls Bu ва 2 bonths/5

Noted 7/8

CONFIDENTIAL Noted

Mer

M

عد حوالہ

هاج

Mr. Cox

486

Reference

77718

HKA 233/1

488

1. I have again redfted the tel. 12. I think the Chinese wd be hostile to any use or Exchange Fund for proposes other than currency Support Investment by the Exchange fund sounds

more promising. Why not blu this munte is a Hong Kong Telno 2056: Public Service Pension Funding when the wider

picture may be cleare.

ап 6/

Please refer to HK Telno 2056 on this.

2.

The $7.5 billion per year in paragraph 3 could be halved if we persuaded the Land Fund to make an equal contribution: that looks like a realistic figure. But the target would only be met in 15 years time. To be of value, an earlier date

If HKG would be much better- say 2000, when the JLG ceases. aimed to meet half the commutable pension element in 9 years,

Hmm. they would have to put aside $6.5 billion a year.

3. We have in the past somewhat jokingly discussed whether the Exchange Fund could not in some way help. If the Chinese really believe that we will somehow run off with the goodies in the Fund then they might not be averse to a suggestion that

exceptionally, it be used partially to fund civil service pensions. I have also pointed out that it would be open to the Fund to offer a (very high) rate of return to HKG on the reserves placed with it for management purposes, which would enable HKG to put aside money for pensions while

/

keeping the reserves at the level it "expected".

4.

I suggest some amendments do your draft telegram in reply to HK TELNO 2056.

MS.

few weeks

Michael V Stone HKD

6 August 1992

Malin

Pls

ви

Bu another

Mr roa's

re

2 months Manuscript menate.

Noteď

Amer

6/10

pensions. funding.HMOCS.mvs

CODE 18-77

CONFIDENTIAL

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