TNAG-0205-FCO40-241-Pensions-policy-1970 — Page 64

CONFIDENTIAL

to take over expatriate pensions which vid or could appear to carry with wasimplification it an impression that Hong Kong might perhaps be included within its

valio

out!

Any

'ividebit, mude ambit, would cause the very greatest difficulty for Hong long and for us

in our deelings with Hong Kong and our relations with China. Stewart's announcement gɛestion was that to meet this difficulty sil dependert territories Which excluded should be excluded from any offer to take over pensions that we might

aake (on the princtly logical ground that they were in a different position and ti:th the proviso that we would sɛree to take ove

H.K wod cause hable unless on defensible Frounds. In the other hand the

niclurim lkę Kiplication) 17 H.K hd also

cause tranble.

in the same way as elsewhere if and as they came up to independenco).

I, for my part, pointed out the illogicality of excluding poor dependeut territorios whilɛt including relatively wealthy independent countrite

and stressed that, e.g. in Fiji, their exclusion would be very badly

received. Given the turbulent history of om relationship with atu Yara

over C. and all that we cannot expect to get away with lesving Fiji out

of an offer of virtually worldwide applicability.

difficultie 5. I had hoped that it might have been possible to avoid by so

defining any offer we made as not to raise any suggestion in Hong Kong

that they should be included; but r. towerê very much doubts whether

this would be possible. There is thus a dilemma. Do we include the

dependent territories and provoke difficulties in Hong Kong or exclude

and provoke difficulties in Fiji and probably elsewhere? Or can we find

parineters for our offer which would incluie dependent territories generally but exclude liong Kong? The only thought that I have is that

Hong Kong (along with Bermuda end Fahamas) are the only dependent terri-

not- tories which have/participatið in 03AS. I wonder if this would offer way out of the difficult

☺ Sermuda and Bahamas are certainly wealthy

enough (and the amounts involved small emugh) for me to raise no objec- tion so their exclusion; "r. Stewart (to whom I am sending a copy of this

minute) may like to consider this pozsibility.

6. At the end of r. Combs' mosting this morning the whole matter was left that the FCO would like to see the dependent territories getzerally

included but recognised the difficulty that this would cause for Hong Yong;

r. Combs was accordingly going to ask you to review the whole situntion concerning dependent territories within the Division and come up with a

/recommendation

CONFILENNIAL

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