CONFIDENTIAL
the Memorandum will need amendment.
On
the assumption that we will have to be
content with the fall back position
outlined above, the following is a possible
redraft of the first two sentences of
paragraph 42:
"It would be difficult not to extend
these arrangements to dependent
territories having executive Public
Service Commissions and we should offer
to take over expatriate pensions from
such territories. Similar arrangements
would be applied to other dependent
territories as and when they reached
the same stage of constitutional
development.
Prior to such arrange-
ments being made expenditure on
expatriate pensions by dependent
territories would be taken into
account in assessing their needs for
development aid."
The last sentence of paragraph 42 could
remain as it is.
Whatever happens at the meeting, the
second sentence of paragraph 42 is
imprecise and could cause us ma jor
difficulty in relation to Hong Kong,
especially.
It would be advisable in due course
to include some reference to dependent
territories in the House of Commons'
Statement. This could come between the
first and second paragraphs of the draft
statement at paragraph 56.
CONFIDENTIAL
/c)
NOTHING TO BE WRITTEN IN THIS MARGIN