Mr. O'Brien,

Reference...

CONFIDENTIAL

Mr. Stewart

R+R

Financial Policy & Aid Dept.

Pension Policy

In the very short time available for comment on a matter of considerable complication, you will not expect me to make more than preliminary

comments on the ODM's papers, insofar as they

affect relations with the countries for which I am responsible.

2. My first comment is that ODI do not appear to take sufficient account of the fact that we are, in these matters, to a considerable extent prisoners of the Kenyan and Ugandan Governments. Whatever pensions obligations they care to drop we shall have to pick up, and this applies not only to white-faced expatriates but also to brown-faced U.K. citizens.

3.

HIG is

Secondly, I do not think that the FCO ought to go along with a policy of demarcation which will be clearly seen to be racially based,

undes a non-discriminatory already sufficiently under fire for concealing/a racial approach to immigration matters under a non- disøriminatory aleek aimed particularly at the East African Asians; ad I do not think we could accept that if the Kenyan authorities stopped paying them their pensions we should allow them to

rot.

4.

Finally, I think that the acceptance of responsibility for expatriate "crown service" pensions will make it harder to maintain the

cloak

"crown service principle" in respect of expatriates

offer drawing pensions from colonial sources (e.g. local governments). If the Nairobi City Council renege on, e their pensions obligations to their former city engineer, now retired and living in Cheltenham,

a, eg.

RECEIVED IN REGISTRY No.51 1ONOV 1969

BKK 18/35

AKKI

I think HMG will be morally bound to pick up the

bill.

It would surely be better to make a clean

CONFIDENTIAL

/sweep

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