NOTHING TO BE WRITTEN IN THIS MARGIN

32855 na (4200)

CONFIDENTIA

Although most overseas governments are

likely to continue to accept their

post-independence pensions obligations (amounting to some 3m.), others may

renegue on them now or in the future.

Since our main objective in under-

taking this exercise is to remove a

source of irritation, or potential

irritation, in our relutions with

independent Commonwealth countries,

there secks to we u :ery strong expe

سم

for aving a thorough job and clearing

up al pockets of potential friction

at cne fell swoop. The P.0.0.

therefore consider tht provision

should be made now to enable H.M.G.

to pay the post-independence portions

of pensions in cases where local govern-

menus wish this and are pre ared to

pay a capital sum in commutation.

(ii) Dependent Territori.s. O.D.M's.

proposals (paragraph 42) are not

acceptable to the F.C.C. since it

could be invidious to include some

dependent territories and exclude

others. Our view is that all

dependent territories should bu

inc luded in the takeover. In parti-

diliberately

cular, (to exclude Hong Kong wille

CONFIDENTI AL

/including

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