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.
CONFIDENTIAL
NOTHING TO BE WRITTEN IN THIS MARGIN