TNAG-0266-FCO40-302-Responsibility-of-UK-for-colonial-expatriate-pensions-of-Hon-1972 — Page 11

CONFIDENTIAL

expatriate pensions in assessing their needs for

development aid.

In addition:

(c) It is our intention in any event to increase the level

of our aid to dependent territories generally.

In addition it is recommended that we should insist that the

above points should be included in any public statement

announcing new policies.

Unless we make some statement on the

lines of (b) and (c) we will be exposed to criticism that, by

adopting the line at (a), we are neglecting our own territories.

(some of which are extremely poor) in favour of independent

countries that are in a position to exert pressure on us

C. India

7. In 1955 India made lump sum transfer payment in return

for H.M.G. taking over pensions liability. It is estimated that

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the Indians may be able to make out a case for claiming the sum

of £25 235 million from the U.K. if the O.D.M. proposals are

accepted. The High Commissioner, New Delhi, has been consulted

and foresees no serious difficulty in placating India, because:

(a) India is by far our largest aid beneficiary,

receiving some £40 m. a year;

(6) one of the principles behind this proposal is that

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the cost of the pensions taken over would be taken into

account in determining the aid allocation to particular

countries and India attaches great importance to

cóntinuity of aid.

We share this view.

CONFIDENT IAL

/D.