CYPHER/CAT.A
IMMEDIATE NEW DELHI
TELNO.MODEV 885
CONFIDENTIAL
CONFIDENTIAL
Buisines Volice 2.5
TO MINISTRY OF OVERSEAS DEVELOPMENT
10 DECEMBER, 1969
23
RF
STAG
YRTEL MODEV 794: EXPATRIATE PENSIONS.
PA
REC.IN
REGISTRY NO.51
12 DEC 1969
MUAN HK/18/35
12/12k
OWING TO VISIT OF SELECT COMMITTEE ON OVERSEAS AID, OFFICERS
MOST DIRECTLY CONCERNED WITH THESE MATTERS ARE NOT AT PRESENT
AVAILABLE IN NEW DELHI. MOREOVER, OUR GENERAL VIEW IS THAT THE
PROPOSED ACTION IN RESPECT OF OTHER EXPATRIATE PENSIONS OUGHT
NOT TO DISTURB THE 1955 ARRANGEMENTS WITH INDIA PROVIDED THAT
AS YOU HAVE IN MIND, H.M.G. NOW TAKE OVER THE INDIAN GOVERNMENT'S
RESIDUAL RESPONSIBILITY, ESTIMATED AT APPROXIMATELY £100,000 A
YEAR IN RESPECT OF THESE PENSIONERS EXCLUDED FROM THE 1955
AGREEMENT.
2. WE DOUBT WHETHER INDIANS WOULD ATTEMPT SERIOUSLY TO CLAIM,
BY ANALOGY WITH WHAT WE ARE OFFERING OTHERS FREE, THAT WE SHOULD
NOW TRANSFER BACK TO THEM ANY OF THE CAPITAL SUM ACQUIRED BY US
UNDER THE 1955 AGREEMENT, BUT IF THEY DID, WE WOULD EXPECT TO
BE ABLE EFFECTIVELY TO DISPOSE OF IT MAKING, INTER ALIA, THE POINTS AT (1), (11) ANDO (111) IN YOUR PARAGRAPH 4, AND IN PARTICULAR BY DEMONSTRATING THAT THE OUTCOME WILL MEAN REASONABLE EQUALITY OF TREATMENT BETWEEN THEM AND PAKISTAN.
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1
3. AS REGARDS POINT MADE IN PARAGRAPH 4 OF RAWALPINDI TELEGRAM
ว
MODEV 386, WHILE WE AGREE THAT A PUBLIC COMMITMENT FROM BOTH INDIA AND PAKISTAN GOVERNMENTS WOULD BE THE IDEAL, ANY ATTEMPT TO INSIST ON THIS IN ADVANCE WOULD BE LIKELY TO LEAD TO INTERMINABLE DELAYS, AT LEAST ON THE INDIAN SIDE. THE WRANGLE
OVER CANTEEN STORES PROVIDES AMPLE EVIDENCE OF WHAT MIGHT HAPPEN.
CONFIDENTIAL
140