FINANCIAL ARRANGEMENTS
SECRET
10. A decision taken now to accept the obligations to finance a scheme would be a most unusual one. It would amount to a formal and public political commitment to expenditure which would not begin for ten years. But for the reasons given I do not believe that we can leave a decision to take its normal place in the PES cycle. I propose that the scheme should be managed by the ODA and borne on the ODA's Overseas Superannuation Vote, which meets existing HMG commitments in this field. I could not defend publicly diversion of funds from the Aid Vote to a territory which does not qualify for aid. I hope that you can agree that the starting point for the PES negotiations for the years in question should include sums to cover the additional costs of the scheme.
11. I am sending copies of this minute to the Chief Secretary and to Chris Patten.
Foreign and Commonwealth office
24 November 1988
(GEOFFREY HOWE)