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MDHIAN 1265
STERLING SAFEGUARDS.
8.
I AGREE THAT IT IS ESSENTIAL TO CONTINUE TO RESIST THE
TREASURY'S POSITION ON UK COMPARABILITY. HOWEVER TO ACCEPT A SAFEGUARD AT ANY RATE WORSE THAN 16 HONG KONG DOLLARS: ONE POUND STERLING WHICH HAS AT LEAST SOME HISTORICAL BASIS, WOULD BE
TO
ACKNOWLEDGE THE RELEVANCE OF HONG KONG AND UK SALARY AND PENSION RELATIVITIES.
9.
USING EITHER THE CURRENT EXCHANGE RATE OR THE AVERAGE
EXCHANGE RATE OVER THE LAST TWENTY YEARS WOULD PRODUCE A
SAFEGUARD AT A RATE OF 12 HONG KONG DOLLARS: ONE POUND STERLING.
THE HMOCS ASSOCIATION WILL PRESS FOR 13.76 HONG KONG DOLLARS:
ONE POUND BEING THE 1991 AVERAGE. THEY WILL ARGUE VEHEMENTLY AGAINST A SAFEGUARD AT 16 HONG KONG DOLLARS: ONE POUND AND WOULD PROBABLY REFUSE TO CONSIDER ANYTHING LOWER. IN THESE CIRCUMSTANCES I CANNOT SUPPORT A MOVE TO 19 HONG KONG DOLLARS: ONE POUND. THE TREASURY MECHANISM FOR THE SAFEGUARD COULD POSSIBLY BE ACCEPTED, PROVIDED THAT SPOS IS REVISED ALONG THE LINES PROPOSED BY ODA.
SPOS.
10.
THE SPOS REVISION IS REQUIRED URGENTLY TO ASSIST EXISTING HONG KONG HMOCS PENSIONERS AS WELL AS SETTING HEARTS AT EASE OVER THE PACKAGE OF HMOCS ARRANGEMENTS. I BELIEVE THAT THIS PROPOSAL IS FULLY JUSTIFIED ON ITS MERITS AND THAT IN LOGIC IT MAY BE DIFFICULT FOR THE TREASURY TO ARGUE OTHERWISE. WITHOUT THIS SPOS REVISION A PENSION SAFEGUARD AT 16 HONG KONG DOLLARS 16:0NE POUND IS RELATIVELY WORTHLESS.
11. I CONTINUE TO BELIEVE THAT THE ABSOLUTE MINIMUM ON WHICH TO HOLD FURTHER CONSULTATIONS WITH THE HMOCS ASSOCIATION IS AS SET OUT IN THE FCO PROPOSAL. OFFICERS HAVE WAITED PATIENTLY SINCE 1984 FOR DETAILS OF PROPOSED HMOCS ARRANGEMENTS AND ANYTHING LESS COULD LEAD TO A SERIOUS OUTPOURING OF PENT UP FRUSTRATIONS. I STRONGLY RECOMMEND THAT YOU RESPOND ROBUSTLY TO THE CABINET OFFICE'S DRAFT PAPER, ALONG THE LINES SUGGESTED ABOVE.
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