CONFIDENT LAL
other pensions paying agents of HMG on the most efficient and economical ways
The possible consequences are also
discharging the new responsibilities.
being taken into account in consideration of the ODM's future computer
requirements. It could be that in a few years time the payment of individual pensioners could be taken on without necessitating increases in staff.
TANZANIA
55. The ending of aid to Tanzania as a necessary consequence of her decision to default on pensions was widely and deeply regretted and has been much criticised. For general aid reasons as well as for political considerations
the Secretary of State for Foreign Affairs and the Minister of Overseas
Development are anxious to resume aid to Tanzania.
Acceptance of the proposals
in this paper would make this possible and discussions with the Government of
Tanzania could be initiated immediately.
ANNOUNCEMENT
56. The Minister of Overseas Development would propose to make an early statement in the House of Commons along the lines of the following draft:-
DRAFT STATEMENT
"The Government have recently given careful consideration to representations made by several governments of developing countries that were formerly British dependent territories about the financial burden on their economies of their responsibility for paying pensions and compensation to expatriate officers who were in government service in those territories before independence. Having regard to these representations and to the views expressed by many sections of informed opinion in this country, including Members of this House, the Government has decided that as part of its policy of aid to development it is willing at the request of any government concerned to consider assuming responsibility for the cost of pensions to expatriate officers in respect of pre-independence government service. The assumption of such a responsibility would be taken into account in determining the total amount of aid a country might receive
17 CONFIDENTIAL