at the time of independence, and said that they had accepted only with reluctance subsequent arguments that the pensions issue could not be re-opened during the currency of the present supplementation agreement. Now they were asking Britain to assume full responsibility for their expatriate pensioners in respect of pro-independence service, and to reimburse Kenya for similar pension payments made in recent years. It is not thought that Kenya will hold out for retrospective payment, but it is known that the Cabinet has taken a decision in principle to default on the future responsibility. In September, in anticipation of talks on the future pattern of aid, the Kenya Government submitted officially through the British High Commission in Nairobi a memorandum which contained the following paragraphs

"The Kenya Government aro also deeply concerned with regard to the

question of pensions and compensation in respect of those officers who were designated by the British Government as members of Her Majesty's Overseas Civil Service, or those officers who were covered and protected by the Public Officers Agreement, including those officers who were non-designated. It is the Kenya Government's view, as conveyod to the British toan, that the full cost of pensions and compensation as paid to expatriate officers falling into the above mentioned categories should be met by the British Government, as we consider that is no justification for Kenya, as a developing country, to be burdened as it has up till now, and under the existing arrangements is likely to be burdened conclusively in the future, with the cost for officers who were employed by, and gave services to, the British Government in a British Colony, whose terms of service were governed largely by Colonial Regulations.

We, the Kenya Government, wish to assure the British Government that

our Government is not idly repudiating its responsibilities. Pressuro from our Parliament and, for that matter, general public opinion leave the Kenya Government no alternative but to make known the facts for consideration by the British Government, Kenya feels sure that there

CONFIDENTIAL

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