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to the F.C.o. since it would be invidious to include
some of the non-independent territories and exclude others.
Our view is that all these territories should be included
in the takeover. In particular, deliberately to exclude
Hong Kong while including other dependent territories
could lead to considerable political difficulties with the
colony. (Hong Kong's expatriate pensiona liability is
only £650,000 a year and is not an open-ended connitment.)
As a fallback position, the F.C.0. could accept an
arrangement whereby dependent territories in which the
Public Service Commission had become executive (e.g.
Bahamas, Bermuda and, possibly shortly, Fiji) and all the
Associated States would be included in the takeover, while
in the case of other dependent territories we would aspec
to take account of their expenditure on expatriate poncions
in assessing their needs for development aid - this would
in any case exclude Hong Kong. Eut this would be far less
catisfactory than a clear-cut inclusion of all non-
independent territories in that however presented it would
appear to discriminate against the small, poor and week,
ii) Post-Indexendence Service
The C.D.M. proposal relates to pro-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
renogue on then now or in the future. Since cur main
objcctive in undertaking this exercise is to remove a
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