TNAG-0205-FCO40-241-Pensions-policy-1970 — Page 25

CONFIDENTIAL

largest number, has included them in the case they have presented to HMG and would almost certainly be unwilling to accept an agreement which left them out.

In short the possibility of default would again arise. The cost of bringing within the proposed new arrangements the expatriate Asian pensioners

of Kenya, Uganda, Zanzibar and the Southern Yemen total figures of cost used in this paper

25.

<<

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already included in the

would be not more than £m per year. If some expatriate Asian pensioners are included the question remains whether those of the East African Community and Tanganyika should also be covered. HMG was willing to include them in the POAs offered at the time of independence but President Nyerere was opposed on the grounds that the Asians should decide whether or not to become citizens of the countries in which they served. This argument is understandable but it may nevertheless be difficult now, in the context of East Africa generally, to refuse to cover them in new pensions arrangements if a request for inclusion is made. The ODM considers that if a request is made it should be agreed to. The additional annual cost not included in the total figures of cost used in this paper would be approximately £0.75m, £0.5m for Tanzania and £0.25m for the Community.

EXTENT OF ANY COMMITMENT

26.

The overseas governments would probably like HMG's future commitment to

be complete in the sense that they would wish Britain to assume responsibility for the full expatriate pensions bill and not just that part relating to service given before independence. Such an assumption of responsibility would of course ensure a larger measure of goodwill on the part of the overseas countries and has much to commend it on the most general political grounds. Moreover and especially if the ODM eventually takes over the payment of individual pensioners, see paragraphs 53 to 54 below there would be administrative advantage in simplifying the pensions operation in this way.

27. However, there is reason to believe that the Kenya Government would agree to accept continued responsibility for the cost of expatriate pensions earned

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CONFIDENT TAL