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Trotter Dave (PD01DT) OSEHBF
Monday 25 October, 1993 HONG KONG COMPENSATION
1:43 pm
24.11.88 letter from Howe to Major
A decision taken now to accept the obligations to finance a scheme would be a most unusual one. It would amount to a formal and public political commitment to expenditure which would not begin for ten years. But for the reasons given I do not believe that we can leave a decision to take its normal place in the PES cycle. I propose that the scheme should be managed by the ODA and borne on the ODA's Overseas Superannuation Vote, which meets existing HMG commitments in this field. I could not defend publicly diversion of funds from the Aid Vote to a territory which does not qualify for aid. I hope that you can agree that the starting point for the PES negotiations for the years in question should include sums to cover the additional costs of the scheme.
19.12.88 reply from Major
As you have acknowledged, the vote responsibility would naturally fall to the FCO/ODA. I think you are right to
are right to suggest that diversion of aid funds to a territory not qualifying for aid would not be defensible. But I do not think I can give any undertaking on the source of the funds
far in advance of requirement. If we commit ourselves to a financial obligation our successors will naturally recognise the force of that commitment. But I am sure that they will want to agree precisely how to meet it in PES terms in the light of the circumstances then prevailing.
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