NOTHING TO BE WRITTEN IN THIS MARGIN
W(B)L 51-7406
CONFIDENTIAL
And in accepting an obligation to meet
part of a deficit in the CAPF, H.M.G. has
acknowledged an interest in the Federal
Public Service.
For the above reasons the F.C.o.
believes that the CAPF should be included
in a take-over. It is not possible to
estimate with any accuracy the likely
cost. The first actuarial valuation of
the Fund in 1965 showed a deficiency of
£7.6 m. A deficiency of this magnitude
is not envisaged at the next valuation
(1970) when any deficiency will
probably be accounted for by the sum
(£1.9 m. plus interest) left unfunded
from the 1965 valuation.
There can of course be no question of
taking over responsibility for the
Rhodesian obligation.
f) Somali Republic (Para. 43)
At paragraph 43, the Somali Republic
should have a, not a
g) Tanzania (Paras. 55 and 56)
The references to Tanzania in
paragraphs 55 and 56 are not acceptable
to the F.C.0. as they stand. We cannot
take for granted Tanzanian acceptance of
renewed aid. That is not to say that we
expect it to be refused; only that we
must have due regard to Tanzanian
susceptibilities. Nor would it be wise
to appear over-eager to resume aid since
this would suggest that the U.K. was the
guilty party and that Tanzania was right
to renegue on its pensions obligations.
CONFIDENTIAL
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