CONFIDENTIAL
assume responsibility for post-independence pensions.
But
it would certainly remove any potential bone of contention
and be administratively tidier if we assumed such
responsibility at the outset in return for a commutation
payment by the overseas government. The cost to us would
be approximately £2.6 m. per annum. We should not, however, press this proposal too far (since our main interest lies
in the proposal relating to pre-independence pensions)
provided that any statement of policy is not worded in such.
a way as to exclude for ever the taking over of post-
independence pensions liability.
F. Difficult. Cases
12.
The Treasury may point out that it would be anomalous
to make an across-the-board offer because this may result
in some countries in effect getting more aid than we might
otherwise wish to give. They may also claim that the
concept of taking pensions payments into account in
determining aid allocations may not be very meaningful in respect of a few countries where our capital aid programme
is small or where special conditions pertain to our aid
(e.g. Singapore, Malaysia, Burma). These are valid points
but such countries are very few in number and the possibility
of a few minor anomalies is a small price to pay for
implementation of a policy which is, we believe, in our.
interests. It is not at all clear to us how the Treasury'
counter-proposals would overcome these difficulties!
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/G.