TNAG-0266-FCO40-302-Responsibility-of-UK-for-colonial-expatriate-pensions-of-Hon-1972 — Page 26

CONFIDENTIAL

4.

Some overseas Governments have never fully accepted the validity or morality of our principle, viewing rather their responsibility for

pensions earned before independence as an unwelcome part of the packago

independenco settlement. There have boon cases of dofault. The Somalia

Government defaulted in 1963 when it broke off relations with the British

Government. Her Majesty's Government has mot the cost of paying expatriate ponsioners from aid funds; the cost this year is £39,000. Although relations have been restored there is no prospect of Somalia rosuming this financial responsibility. The Zanzibar authorities defaulted after the 1964 uprising. Her Majesty's Government initially paid the oxpatriate

pensioners, but when Zanzibar becane part of Tanzania the Tanzanian

Government resumed responsibility for them in return for aid promised

earlier by Her Majesty's Government to the Zanzibar Government. In 1967

Tanzania announced its intention to coase from July 1960 paymonts of all

pensions to oversoas officers oarned before the Tanganyika and Zanzibar

Public Services were freed from the Secretary of State's control and not to repay the proportion of the compensation and commutations loans related to the same period. In consequence Her Majesty's Government had to pick

up an expatriate pensions bill of about £1 million per year, and discontinued British aid to Tanzania savo for allowing a technical assistanco programme to work itself out. The Peoples Republic of Southorn Yemen has throughout

rejected the concept that it had rosponsibility for tho pensions of tho pro-independonco public service and rofused to concludo a Public Officers Agreement to cover expatriate officers. Theso pensions are being paid

from aid funds, at a cost this year of £170,000. The Southern Yemen and Zanzibar Governments also effectively defaulted on the payment of local pensioners, but Her Majesty's Government have not accepted any

obligation to do anything about that.

5. Her Majesty's Government's readiness to accopt responsibility for

oxpatriato pensions payments on which other Governments have defaulted

is ombodied in a carefully wordód assurance given to tho Overseas Servico

Pensioners Association in 1964 by the thon Secretary for Technical

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CONFIDENTIAL