112

Sir L. Monson

CONFIDENTIAL

Overseas Pension Policy

At the second meeting of officials on 16 January, the Treasury

dug their toes in and said they were unable to recognise the need for

a change in policy on payment of pensions for expatriates in respect

of pre-independence service. We did not therefore have any

substantive discussion about the merits of including dependent

territories and in particular Hong Kong in any scheme which emerged.

I did however say that if Hong Kong were not to be included in the

take-over we would wish to have an opportunity of consulting the

Governor and in particular of getting his reaction to the possible

fall-back position of excluding dependent territories which had

executive public service commissions. Since the timetable was

slipping, I thought you might wish to consult the Governor now.

Mr. Hooper, who has been chairman of the Official Working Party,

said he saw no objection to this and the way is therefore clear for

you to go ane ad if you wish. The Treasury asked whether they could

see any telegrams which were sent to Hong Kong. I said, rather

unbriefed, that I saw no objection to this and indeed I think there

is advantage in the Treasury being made as aware as possible of all

the difficulties which are likely to arise from their rather

intransigent position. The O.D.M. are of course also making

CONFIDENTIAL

/ difficulties

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