TNAG-0266-FCO40-302-Responsibility-of-UK-for-colonial-expatriate-pensions-of-Hon-1972 — Page 29

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are means of approaching this matter and achieving an agreed solution by negotiation acceptable to the two Governments whereby Kenya can satisfy public demands, which is most important at this stage of Kenya's development, and can, at the same time, honourably fulfil its debt obligations by offsetting, or abating, loan ropayments, together with the cost of pensions, against Aid income."

Kenya's view is known to and shared by the Government of Uganda. If Britain could not reach an agreement with Kenya default by that country would undoubtedly be followed by default by Uganda and tho East African Community. This would place on Her Majesty's Government an additional ponsions bill of about £3.7 million per annum, and consequential defaults by some other Governments could not be ruled out.

10. Alongside developments in East Africa, there is a body of opinion in the United Kingdom which also believed that Britain should assume responsi- bility for the cost of pensions earned in the service of overseas countries before independence, This is evidenced by the increased activity of the pensions lobby in Parliament, by views expressed at the meeting of the Select Committee on Overseas Aid on 7th July 1969, articles and correspondence in the Press and for instance statements in the manifesto "Power to end Poverty" of the Action for World Development Group which includos such bodies as Oxfam, War on Want and the UNA. In particular these interests have strongly criticised Hor Majesty's Government's action in cutting off aid to Tanzania.

Ministry of Overseas Development Proposals

11. In the light of those developments and having regard to the additional funds available for aid, the Ministry of Overseas Development consider that it is right and opportune for gonoral aid reasons to make a major change in policy regarding rosponsibility for the cost of overseas pensions to expatriate officers. The Ministry of Overseas Development consider that the change should be made in a way that will earn the maximum goodwill and credit with the overseas countries, and therefore think it essential to make

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