CONFIDENTIAL
FM FCO
TO DESKBY 17010OZ HONG KONG
TELNO 1626
OF 161847Z NOV 92
CONFIDENTIAL
Mar
617
054600
HKA 233/1
MDHOAN 4253
TOP COPY Q DIST?
PERSONAL FOR DINHAM, GOVERNMENT HOUSE FROM RICKETTS, HKD
HMOCS
1
■
THE SECRETARY OF STATE HAD A PRIVATE MEETING WITH MR PORTILLO
THIS MORNING.
2.
THE MAIN POINTS WERE:
(A) MR PORTILLO DID NOT APPEAR TO QUESTION THE PRINCIPLE THAT HMG SHOULD PROVIDE A (BEGIN UNDERLINING) PENSIONS SAFEGUARD (CEASE UNDERLINING). HE HAD BEEN ADVISED THAT A FAIR SAFEGUARD RATE TAKING ACCOUNT OF ACTUARIAL DATA AND THE DIFFERENTIAL BETWEEN HONG KONG AND BRITISH CIVIL SERVICE SALARIES AND PENSIONS WOULD BE 26:1. HE WAS NOT, THEREFORE, PREPARED TO ACCEPT OUR PROPOSAL OF 16:1 BUT APPEARED PREPARED TO SETTLE FOR SOMETHING BETWEEN 16:1 AND 26:1.
(B) THE CHIEF SECRETARY DID NOT MENTION THE PRIVATE SECTOR OPTION FOR SAFEGUARDING PENSIONS.
(C) THE CHIEF SECRETARY SAW DIFFICULTIES WITH THE PROPOSALS ON COMPENSATION. HE DID NOT SEE IT AS A SIMPLE CHOICE BETWEEN OPTION C AND OPTION D. HE QUESTIONED WHAT THE OBJECTIVE OF THE SCHEME WOULD BE. WERE WE TRYING TO PERSUADE OFFICERS TO REMAIN UNTIL 1997 OR CONTINUE AFTER 1997? THIS ALSO TIED IN WITH THE PROSPECT FOR A HONG KONG GOVERNMENT (BEGIN UNDERLINING) EARLY RETIREMENT SCHEME (CEASE UNDERLINING. HE WONDERED HOW THE TWO WERE CONSISTENT, AND WAS INTERESTED TO KNOW WHETHER HKG WOULD BE ABLE TO OFFER A PROPOSAL ON EARLY RETIREMENT.
(0)
THE CHIEF SECRETARY WISHED TO LEAVE TO ONE SIDE THE QUESTION OF AMENDING THE (BEGIN UNDERLINING) SPOS REGULATIONS (CEASE
UNDERLINING).
3.
MR PORTILLO SUGGESTED THAT A FURTHER MEETING MIGHT BE HELD LATER IN THE WEEK. THE SECRETARY OF STATE HAS ASKED IN THE FIRST PLACE THAT WE SHOULD PUT REVISED PROPOSALS TO THE TREASURY ON 17
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CONFIDENTIAL
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