5. The history of Indian pensions is a little different. Again at independence responsibility for expatirate pensions passed to the incoming Governments of India and Pakistan.

However, the British Government continued to act as the

paying agent when pensioners were paid outside Asia. In 1955, to simplify administration, the British Government offered to take over formal responsibility for the pensions it was paying, on receipt of a lump sum to meet their future

costs. India accepted this offer but we were unable to

reach agreement with Pakistan. The expatriate Pakistan pensions, and a handful of Indian pensions left out of the

1955 Agreement, were eventually taken over under the 1970

initiative.

6.

The 1970 initiative was restricted to those independent countries considered to be "aid worthy". Hong Kong does not satisfy this criterion and there are no plans for HMG to take over responsibility for paying its expatriate Civil Service pensions in 1997.

ROFALR/2

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