TNAG-0205-FCO40-241-Pensions-policy-1970 — Page 26

since independence.

Moreover the Government of Tanzania defaulted only on

that part of pensions which related to pre-independence service and has

Continued to pay that part which is in respect of service given since

independence. Thus if HMG offered to take over full future responsibility

for expatriate pensions it would to some extent be going beyond the real

expectations of the African countries. The additional cost to HMG of taking

over full responsibility rather than that for the pre-independence part of

the pensions bill would be approximately £3m.

28.

The Minister of Overseas Development proposes that HMG's willingness to

meet the cost of expatriate pensions should be confined to that part of the

bill which is related to pre-independence service.

29. The dividing line needs to be defined. It could be in each case the

date on which a country became independent or the date on which the Public

Service Commission became executive and control over appointments and

promotions passed into local hands. The date of independence has obvious

attractions from a presentational point of view but would cause practical

difficulties in some cases especially in relation to Nigeria, where some

Regions had internal self-government before national independence, and the

former Federation of Rhodesia and Nyasaland.

It is proposed that the dates

to be chosen should be those on which the Public Service Commissions became

executive.

COUNTRIES AFFECTED

30. The Minister of Overseas Development would not of course seek to force

the proposed new arrangements on any overseas government (and would wish to

have regard to the general aid situation of each country, see paragraph 45

below). But the question arises whether HMG should agree in the case of

every country that might seek the new arrangements after a policy statement

had been made. A number of considerations must be taken into account

political, historical and economic.

The next few paragraphs deal with some

specific cases.

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CONFIDENTIAL