SA 222/05

CONFIDENTIAL

MINISTRY OF OVERSEAS DEVELOPMENT

ELAND HOUSE, STAG PLACE

LONDON S.W.1

TELEPHONE ***

834 2377, Ext. 363

3rd October, 1969.

5

Dear Combs,

s/e

2.

Overseas Pensions

I enclose copies of a note of our discussion on 26th September.

On

In the light of our discussion with you we have been doing a little more thinking about possible exclusions of countries. I fully agree that it is far from easy to defend any particular principle of exclusion. the other hand we are beginning to have fairly firm views here on the inclusion or otherwise of some of the countries we talked about. I will refer first to those on which the decision seems straightforward, and then come on to the more difficult ones.

3.

We would certainly consider that Hong Kong should not be included in the scheme on the same basis as other territories, although we fully take

We think your point about the undesirability of appearing to leave her out. that the Associated States, the Bahamas and Bermuda should be included, as should Brunei, Ceylon, and the Suden.

4.

Our aid relations

We see no case for taking over Egyptian pensions. with Egypt are virtually nil, and in any case we think the pensioners concerned took service with the Government of Egypt on a direct engagement basis (rather as a man today might take up an official post in, say, Saudi Arabia, without any British Government intervention).

5.

This leaves us with india, Pakistan and Burma, which have always been treated as one area for pensions purposes. The decisive factor here is that we have already taken over all India's pensions (apart from those for a small number of Europeans resident in India) in exchange for a cash payment which it would be inconceivable to return. This leads us to the conclusion that the arrangements for Indian pensions must stay as they are, in which case those for Pakistan and Burma must do likewise.

6.

We will now consult in greater detail on all this with your geographical interests, as well as with our own, and in this connection we are glad to have Bailey as our central point of contact with you.

Baidie

W. I. Combs, Esq., C.M.G.,

Nows ever,

hew

Youren Martin

Foreign and Commonwealth Office,

Downing Street, London, S.W.1.

(L. C. J. Martin)

GRMD.

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