Limited inclusion
India
CONFIDENTIAL
Excluded
Egypt
Former Federation of
Rhodesia and Nyasaland
Rhodesia
Former Federation of the
West Indies
TOTAL COST AND THE EFFECT ON THE AID PROGRAMME
44. Excluding the possibility of HMG assuming responsibility for the full cost of expatriate pensions (paragraphs 26 to 27 above), and the possible sum of £0.75m per year in respect of Tanzanian and East African Community expatriate Asians (paragraph 25 above) the net additional cost to HMG of the proposals set out in the foregoing paragraphs would be about £12m per year and approximately 40,000 pensioners would be covered. Details of the present distribution of expenditure between the overseas governments and HMG are shown in Appendix I. 45. Although the additional cost would be of the order just stated the Minister of Overseas Development does not propose that it should be considered as a straightforward extra claim on the funds available for aid and added to each country's "allocation". She proposes in the case of each country concerned
to have regard to its total need for British aid of all kinds and to act accordingly. In a number of instances the financial aid that a government
may receive by way of a greatly increased contribution by HMG towards the cost of expatriate pensions will be "offset" against the cost of the aid that it
might otherwise have received in other forms.
WIDOWS AND ORPHANS
46. The way in which a new policy on pensions would be administered is dealt with in paragraphs 52 to 54 below. In this connection it should be mentioned here that in addition there is a widows and orphans pension liability of
approximately £1.5m per year which is attributable almost entirely to pre-
靠
independence service. However these pensions are almost wholly contributory
and some are funded although in some instances the management of the fund is
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CONFIDENTIAL
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