EXTRACI
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The new arrangements
PAPER
9. H.M. Government are therefore ready to enter into Agreements with employing Governments in order to assist in resolving the problems hich beset them, and the officers concerned, in relation to the employment of expatriate staff. The arrangements envisaged by H.M. Government will in- clude pensionable expatriate officers who are or become members of Her Majesty's Overseas Civil Service and expatriate contract officers who were or are appointed in the same way as members of Her Majesty's Overseas Civil. Service (see Appendix A). The categories of officers brought within the scheme would thus not exclude persons engaged in countries other than the United Kingdom itself, and the exact categories to be included would be defined in the Agreements to be concluded with individual overseas Govern- ments. These are the new arrangements in outline:
(a) In many territories the total emoluments payable to an overseas officer consists of two elements: the basic salary attached to the job, which is primarily that payable to a local officer, and an ex- patriation or inducement element payable in general only to an over- seas officer. In other territories no such element is payable or, in the case of super-scale and special posts, it may be consolidated in the basic salary. H.M. Government recognises that in the case of the vast majority of expatriate officers such an inducement element is a necessary part of their emoluments and will therefore assume full responsibility for its cost. It will be necessary as part of these arrangements to have a fresh review of the emoluments of the officers concerned in many territories.
(b) H.M. Government will also bear that part of the cost of the pension or gratuity payable to an officer on his retirement which stems from the payment of inducement allowance to him, and the normal arrangements for sharing pensions where officers have been employed by more than one Government will be adopted for this purpose. For the purposes of United Kingdom taxation the additional pension will be treated in the same way as existing pension. (c) The cost of children's education is one of the heaviest burdens of an expatriate officer. H.M. Government will pay education and children's allowances similar to those payable to members of the Home Civil Service posted overseas.
(d) Proper arrangements for leave passages for both the officer and his family are essential if service overseas is to be acceptable. H.M. Government also consider that where an officer is serving overseas accompanied by his wife and his children are being educated outside the territory in which he is serving. provision for passages should be made in order that the children may visit their parents, or if this is not more expensive, be visited by their mother once a year. But passage costs may prove a considerable recurrent burden on developing territories and H.M. Government will meet half their
cost.
(e) while it remains the policy of H.M. Government that compensation for loss of career is payable on premature retirement to members of Her Majesty's Overseas Civil Service, it is recognised that this
may constitute a heavy capital liability on territories beginning take the strain of self-government. H.M. Government have therefore w contributed to some compensation schemes now in force or have taken account of their cost in considering what further financial assistance should be given. For future schemes H.M. Government will share the cost equally with overseas Governments.
These arrangements will be the subject of an agreement with each territory concerned. It is intended that, subject to the terms of these agreements, the arrangements should have effect from the 1st April, 1961.
10. The considerations which have led to the decision to offer these new arrangements apply in varying degree to most dependent territories. H.M. Government are therefore prepared to enter forthwith into an agreement with each of these territories with the exception, at least for the present, of the Bahamas, Bermuda, Brunei and Hong Kong where for a number of reasons this form of help is not regarded as appropriate. H.M. Government are also prepared to offer these arrangements to Nigeria since, while Nigeria is now independent, many expatriate officers still serve there, and to Sierra Leone, which is due to become independent in April, 1961. But in the case of both of those territories general Public Service settlements have been negotiated and compensation schemes settled. These schemes could not now be upset. In the case of Northern Rhodesia and Nyasaland special considerations apply inasmuch as they are part of the Federation of Rhodesia and Nyasaland. In particular they are also affected by the recommendation in paragraph 276 of the Report* of the Advisory Com- mission on the Review of the Constitution of the Federation to the effect that there should be a comprehensive review of the Public Services in the Federation: and the application of the arrangements described in this Paper to Northern Rhodesia and Nayasaland will need to be studied in the light of that recommendation.
11. It is important to emphasise that Her Majesty's Government are making an offer of assistance to overseas Governments. It is a matter for each Government to whom the offer is made to weigh its advantages and decide whether or not they will accept the offer. It is important also that both the Governments and the officers concerned should appreciate that although members of Her Majesty's Overseas Civil Service are members of a common Service under Her Majesty they are, during their service in a particular territory, the servants of the Government of that territory and employed by it, and owe their full loyalty to that Government. There must be no misapprehension on the part either of the Government concerned or of the individual officer that because under the arrangements described in this Paper Her Majesty's Government will assist the territorial Government in the making of payments to an officer, the claim of the territorial Govern- ment upon the loyalty of that officer is in any way affected.
12. It is intended that the initial duration of the agreements shall be for a period of up to ten years. Their renewal after the expiry of their initial period would be a matter for determination and negotiation in the light of the circumstances then obtaining. As the local Services are built up so the need for help in skilled manpower from overseas will decline. It would be Her Majesty's Government's wish that each agreement should
Cmnd. No. 1148.