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cst.ps/ar/28mp12.11
Ps
The Goodland
Ritu
Bryrone Chakker
Pus Wirl J Congs
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CHIEF
CONFIDENTIAL
SECRETARY
B
TO THE
TREASURY
18389
in Ricketts H&J 288
Griefor for advice Rum sings
Is RFD Treasury Chambers, Parliament Street SWIP 3AG
4
News
071-270 5000
Fax 071-270 5456
HKA.233/1
19 NOV 1993
The Rt Hon Douglas Hurd CBE MP
M4 14 m 16/11
the White1610
15/x:
For dhe reply today pote
Secretary of State for Foreign & Commonwealth Affairs
Foreign & Commonwealth Office King Charles Street
London
SW1A 2AH
15 November 1993
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bar forples fouglas
HONG KONG HMOCS: PENSIONS AND COMPENSATION
confirm
Following exchanges last week, I would now like to agreement on the package of benefits for Hong Kong HMOCS officers.
This agreement is as follows:
2.
I
A compensation scheme costing a maximum of £39 million at current prices. I realise officials will need to work out the precise details of the scheme but I should stress that I see £39 million as a maximum cost. Accordingly, I expect the scheme to operate along the lines agreed by officials: this is based on a reduction of some 20% in the actuarial factors on which payments are based.
A sterling pensions safeguard set at a level of HK$21:£1 and to operate on the basis of the Treasury mechanism as set out in paragraph 6 of my letter to you of 15 January this year; the maximum estimated contingent liability under this arrangement would be £154 million. This safeguard covers all contingencies which would reduce HMOCS pension payments to a level where the safeguard would be triggered, including a decline in the HK dollar, or any default on pension payments by the
Chinese.
No comments yet.
Private notes are available after approval.