TNAG-2429-FCO40-3531-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 26

25 November 1992

BY FAX

Mr Paul Fifoot

HKA 233/1

3@ NUV 1992

Foreign & Commonwealth

Office

London SW1A 2AH

Telephone: 071-

270 2651

633

Dear Paul,

HMOCS

1. As you know, we have been discussing with the Treasury a package of measures for HMOCS officers. Although the Treasury have not stated explicitly that they accept, as part of this package, a sterling safeguard for pensions, the fact that discussions have focused on the level of the safeguard suggests that they will do so.

2.

The sterling safeguard will create a contingent liability (hopefully not an actual liability, although this is of course possible) from the date it comes into force. The ODA, which will pay any liability that may arise, need a suitable legal mechanism under which payment could be made. Hopefully a means can be found which would not require primary legislation. I would be grateful for any advice you can offer on this point.

Yours eve

Nijel

N C G Whitney

Hong Kong Department

let.fif.ADM

SLM