CONFIDENTIAL
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 ens
fell swoop.
There is the further point that taking over
responsibility for pensions involved a čogrce of connivance
at default on an obligation. This is inevitable in the
situation that has arison but is probably better to do at
once rather than twice. The F.C.0. therefore consider
that provision should be made now to enable H.H.G. to pay
the post-independence portions of expatriate pensions in
cases where local governments wish this and are prepared
to pay a capital cum in commutation. Wo would not however
wich to press this to the point where it was likely to
affect Treasury agrocnent to the scheme as a whole.
iii) Central African Federation
The O.D.M. (paragraph 40) do not propose to include
pensions in respect of cervice to the former Fedcration
of Rhodesie and Nyasaland in the take-over because:
(a) the Federal Public Service was a wholly local
public service.
(b) Federation pensions are all post-independence
pensions.
(c) Federation pensions are covered by the Central
African Pension Fund (CAPF),
The CAPF was seù up at the dissolution of tho
Federation.
H.M.G. is responsible for making good 25% of
CONFIDENTIAL,
Jazy