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.

१५

1

3. AS REGARDS POINT MADE IN PARAGRAPH 4 OF RAWALPINDI TELEGRAM

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

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