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 beets 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 quastion should include
sums to cover the additional costs of the scheme.
11. I am sanding copies of this minute to the Chief
Secretary and to Chris Patten.
Foreign and Commonwealth office
24 November 1988
(GEOFFREY HOWE)