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RATES OF PENSIONS OF THE FIGHTING SERVICES.
(Previous
Reference: Cabinet 4 (26). Con- clusion 4.)
4. The Cabinet had before them the Report of
the Secretary of State for Scotland's Committee
question
on the Rates of Fay of the Fighting Services on the/
referred to it by the Cabinet on the 10th February,
1926, namely, the vision of the rates of Service Pensions (Paper C.F.-252 (28)), the recommendations
of which, as compared with the present position,
are shown in the Table attached as Appendix I.
The Cabinet were informed that recruiting
for the Army had been proceeding somewhat slowly
this year and had only recently begun to improve,
that
with the result that the Army was somewhat under
strength. The announcement of a proposal for
reduced pensions, even though it would not take
effect for 21 years, would have a detrimental effect
from a psychological point of view, more particularly
coming, as it would, immediately after the announce-
ment of the stabilisation of war pensions.
In these circumstances the Cabinet, while
approving the Report of the Secretary of State for
Scotland's Committee (Paper C.P.-252 (28)), agreed
That the decision should not be announced until next summer.
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