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W(B)L 51-7406
CONFIDENTIAL
c) Post-Independence Service
The O.D.M. proposal relates to pre-
independence service only (paragraph 28).
Although most overseas governments are
likely to continue to accept their post-
independence pensions obligations
(amounting to some £3 m.), others may W
renegue on them nox or in the future.
Since our main objective in undertaking
this exercise is to remove a source of
irritation, or potential irritation, in our
relations with independent Commonwealth
countries, there seems to be a very strong
case for doing a thorough job and clearing
up all pockets of potential friction at
one fell swoop. There is the further point
th at taking over responsibility for
pensions involves a degree of connivance
at default on an obligation.
This is
inevitable in the situation that has arisen
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but is probably better to do at once
rather than twice. The F.C.C. therefore
consider that provision should be made now
to enable H.M.G. to pay the post-
independence portions of expatriate
pensions in cases where local governments
wish this and are prepared to pay a
capital sum in commutation.
We would not
however wish to press this to the point
where it was likely to affect Treasury
agreement to the scheme as a whole.
d) "Belongers" Para. 20(a)
Paragraph 20(a) is imprecise and we
would wish to be assured that, in the
absence of a P.C.A. agreement, the Minister
would consider that "belongers" who are
CONFIDENTIAL
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