Mr. Wilford
Sir L. Monson
Nr. Stewart
·22
18
US
PENSIONS POLICY
I have seen Mr. Morgan's minute dated 20 November, together with Mr. Fairclough's minute of 18 November, and feel that I should set out the difficulties in relation to Hong Kong that we see in the proposals so far made for picking up the expatriate pensions bill- in dependent territories (past and present).
2.
The scheme, as first envisaged, appears to have been confined to a proposed British offer to take over with effect from 1 April, 1971 the portion of pensions payable to expatriate public service officers, which relates to pre-independence service with the Governments concerned. From this it seemed that HMG would be dealing only with the now independent Governments of former dependent territories. However there were references to certain named dependent territories and during the consideration of the proposal the FCO seem to have taken matters further by considering the extension of the scheme to territories which are still dependent,
Τη whether or not they have reached a stage of self-Government. succeeding paragraphs I deal successively with the situation as envisaged originally and as developed by the FCO.
3.
There has, I think, been some misunderstanding of Hong Kong
We do not see in these Department's position in this matter.
In
proposals any serious danger of embarrassment to our relations with China. Our difficulties arise in the main from possible repercussions within the Colony and on our relations with the Colony. particular we are concerned that it appears to be the present intention to exclude Hong Kong from any scheme that may be agreed.
4. We do not see insuperable difficulty in a scheme which provides for picking up the expatriate bill upon the attainment of independence or self-governing status (i.e. upon the vesting of control of the civil service in an executive Public Service Commission). No deliberate exclusion of Hong Kong woulâ be
/ involved