TNAG-2428-FCO40-3530-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 146

CONFIDENTIAL

the year.

4.

We have drafted a paper and discussed it several times with

the Treasury. It has been slightly delayed by the need for the

Government Actuary's Department to produce up-to-date statistics

and graphs and for the Hong Kong Government to extract from the

Hong Kong Bank a watertight explanation of why the private

sector cannot offer a suitable scheme for safeguarding the

sterling value of pensions. We now have these, and despite

Treasury foot-dragging, plan to finalise the paper with them

next week. We will then submit it with a minute from the

Secretary of State to Mr Portillo. That should leave time for

a further discussion with Mr Portillo before the Governor's

visit (16-20 November) which will be the best opportunity to bring decisive political pressure to bear on the Treasury.

6. The Governor's purpose in writing now and in strong terms is to give us further ammunition for use with the Treasury. We have therefore passed a copy of the letter to the Treasury. The reply is also drafted in terms which, if the Secretary of State

agreed, could be copied to the Treasury.

Plilish

PF Ricketts

གིས་

hmocs.MPSLETT.bp

CONFIDENTIAL