3
CONFIDENTIAL
OVERSEAS PENSIONS
2 778,000 HK 640,000.
ском.
A
In view of the mounting criticism of our traditional policy on overseas
pensions, as well as the possibility of default by Kenya and other East African
countries, the Minister of Overseas Development has decided to propose to the
DVO Committee, at an early appropriate time in the light of the results of the
current PESC review, that HMG should take over the pensions paid by overseas
Governments to expatriate public service pensioners.
2.
The main elements of the proposals he has in mind are
Червые.
3.
(i)
(ii)
Britain should offer to take over from 1st April 1971 the
portion of these pensions which relates to pre-independence
service with the Governments concerned.
A similar offer should be made in respect of commuted pensions.
thus relieving the overseas Governments of the pre-independence
portion of the commutation loans; at the same time the
portion of loans remaining to be met by overseas Governments
would be made interest-free.
(iii) Outstanding compensation loan repayments would be waived in
full.
Kenyan demand mads previawaler.
(iv) There would be no retrospection in these arrangements.
(v) The money for these concessions would probably be found from
the Aid Programme as a whole, rather than by precise credit
and debit calculations country by country.
The chief issues on which FCO views would be welcome are which countries
(if any) might be excluded from the new arrangements, and what (if anything)
should be done about Asian pensioners in East Africa.
4. There are three categories of country which might be omitted from the
•
take-over The first are those whose pension payments are well established
historically, i.e. India, Pakistan, Burma and Egypt, together with Israel and
Jordan in respect of the former Palestine Mandate, and three other special
/cases
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