SECRET
134612
MDLIAN 4690
譬
し
relativity to caps in other territories, the cap now proposed was believed to be too low having regard to Hong Kong salaries. Additionally it was hoped that the phased payment arrangements might be negotiable.
6.
The Committee and the members in general were very disappointed about the proposed sterling pension safeguard which they consider unacceptable. They felt that an exchange rate of HK$21:Pounds 1 was entirely arbitrary,
was entirely arbitrary, without historical justification and not in accordance with practice and precedent elsewhere. The Committee intend to ask HMG to explain the justification for such an offer. The SPOS amendment was generally welcomed, especially by those HMOCS pensioners present and by officers about to retire at age 55 or 60.
7. The meeting then moved on to extend the term of office of the present Committee. The Chairman concluded the meeting by reminding members that it was not in anyone's interest to have this subject figure in emotive or speculative media reports. This appeared to be accepted by those present.
ASSESSMENT
8. The compensation scheme appears to be generally acceptable to the Association in principle but we believe that they will press hard for an increase in the cap and probably for some changes to the phased payment arrangements. We believe that consultations on the proposed sterling pension safeguard will prove very difficult. The Association welcomes the SPOS amendment, but this does not mean that they will accept what they see as an arbitrary and indefensible sterling safeguard proposal.
9. There has been very little in the media so far but details are bound to leak out. We anticipate some local criticism of these arrangements, probably on the early retirement aspects in particular.
PATTEN
YYYY
PAGE
SECRET
2
No comments yet.
Private notes are available after approval.