cst.ps/dr/10pw28.4
100352
CONFIDENTIAL
CHIEF
SHE SECRETARY
TO
THE
TREASURY
HKP
cc ps
116 file
Ps/Mer Goodled PSIPUS
Sirs. Celes
Treasury Chambers. Parliament Street SWIP 3AG Huns
071-270 5000
Fax 071-270 5456
Ms Melanie Leech
Private Secretary to
Sir Robin Butler Cabinet Office 70 Whitehall London
SW1
Dear Melanie,
HONG KONG: HMOCS PENSIONS
FEO Planners
HKA 233/1
News
TRY
29 APR 1993
28
on Take
April 1993
Special Advisery Mr Kerby, mont
for Whitney
Wespalle.
J414
The Chief Secretary has seen a copy of Roderic Lyne's letter to Stephen Smith of 26 April, along with intervening correspondence not previously copied to him. 1(2
He
2. The Chief Secretary would also welcome an early resolution of this matter.
is very concerned however that further consideration should not be based on misconceptions about the
legal position.
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3. The Governor's letter of 20 April referred to legal opinion that HMG's position would be vulnerable if members of the Hong Kong HMOCS Association were to seek Judicial Review. This is not consistent with the legal advice from Treasury Counsel advised that the risk to HMG of successful legal challenge was very small provided HMG had already announced a scheme to provide some measure of safeguard for the sterling value of pensions that was defensible and fair. In determining what was defensible and fair, Treasury Counsel considered that it would be hard successfully to challenge a proposal that took full account of the differences between HK HMOCS salaries and pension benefits and those of their UK counterparts.
4. This, together with the need to balance the position of HK HMOCS"; members with the interests of the UK taxpayer, has underpinned the Chief Secretary's proposed package of benefits. It would mean that HK HMOCS members would enjoy retirement benefits
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