TNAG-2685-FCO40-3886-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 43

8.

CONFIDENTIAL

- 5

IN

то ADDITION

THE

COMPENSATION

SCHEME

AND

STERLING

PENSION SAFEGUARDS

WE ALSO NEED TO PROCEED WITH

THE MODEST SPOS REVISION PROPOSED BY ODA SOME TIME AGO.

THE PENSION SAFEGUARD PROPOSALS WILL NOT WORK EQUITABLY,

AGREED, WITHOUT A SPOS REVISION.

WHATEVER THE

RATE

EXISTING HK HMOCS PENSIONERS AND THE OVERSEAS

SERVICE

PENSIONERS ' ASSOCIATION HAVE BEEN AWAITING THIS REVISION

FOR SOME TIME.

THERE IS NO REASON TO DELAY THIS LOGICAL

AND VERY MODEST IMPROVEMENT FOR PENSIONERS.

9.

THE

I confirm that our initial legal advice is that

COMPENSATION

AND

STERLING

PENSION

PROTECTION

arrangements will require primary legislation. My postbag

already shows that HMOCS members and former members will be

able to attract considerable support, particularly from our

back-benches, and that we could face a major row.

Own

It

would be very difficult for the Government to defend a

scheme in those circumstances

considered to be inadequate.

which the Governor Also

I THEREFORE AGREE THAT A

POLITICAL DECISION IS NOW REQUIRED.

10.

I am copying this letter to the Prime Minister.

DOUGLAS HURD

CONFIDENTIAL