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04/05/93 12:56
PP
Mr N C G Whitney
Hong Kong Department/FCO
Reference
NU.688 POOZ
From: D S FISH
(Ext 3444 - AH501)
Date: 4 May 1993
HONG KONG: SPOS
1.
I note from Hong Kong Tel No 666 that the Governor is pressing for an early announcement about the SPOS revision. The Overseas Service Pensioners' Association (OSPA) will also emphasise the importance of the SPOS amendment when they meet Mr Goodlad next week.
2. I have discussed tactics with both you and John Morris and we agreed that it would make sense to try to take advantage of the current momentum for a solution to the HMOCS problems by putting SPOS firmly back on the agenda. John Morris is going to raise it with the Treasury today. They will resist the proposal because they believe that it compromises their comparability objectives. However, the previous Chief Secretary said "I recognise the degree of inequity which exists in the way in which the SPOS arrangements operate at present in respect of HMOCS pensioners". And it is this inequity which could lead to a legal challenge. OSPA aïe aware of the Blanche case and the possibility of a Judicial Review. They have been instrumental in holding him back, partly because they know that the SPOS arrangements were under review and partly because they have no wish to become embroiled in a legal battle with the Government. Nevertheless, they are under pressure and may not be able to avoid lining up behind Blanche before too long. You may wish see the latest legal advice we have copy attached. Even if Mr Duke is correct, I do not feel over confident of sustaining a policy where we fail to treat pensioners in an 'evenhanded' way - or as the Treasury admit, we treat them 'inequitably'. The Cabinet Office need to be made aware of the vulnerability of our position and it would do no herm for John Morris to highlight this when he sees the Treasury team later today.
An Brown
D S FISH
Overseas Pensions Department
4 May 1993
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