CONFIDENTIAL
OSPA consider (and we agree) that the current SPOS
arrangements operate unfairly by adjusting pension supplements when the Hong Kong dollar appreciates against sterling, but
not doing the same when the reverse happens. The ODA have
examined possible modifications to the Regulations, but the
Treasury are not prepared to consider any change until a decision has been taken on the sterling pension safeguard
element of the HMOCS package.
5. OSPA are aware that the Governor is taking a personal
interest in this subject. However, they do not know (nor does
the HMOCS Association in Hong Kong) that the Prime Minister
has asked the Cabinet Office to recommend a solution. The
Cabinet Office have held meetings with FCO and Treasury officials and we are hopeful that they will put forward
recommendations within the next two weeks.
ospa.bckg.ADM
SLM
CONFIDENTIAL
2
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