TNAG-0266-FCO40-302-Responsibility-of-UK-for-colonial-expatriate-pensions-of-Hon-1972 — Page 30

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it one of general application in appropriate cases. The Ministry of Overseas Development consider that an attempt to deal ad hoc with the particular caso of Kenya, or even Kenya, Uganda and the East African Community taken together in conjunction with a new resolution of the Tanzanian situation, would almost certainly entail as a consequential a noed before long to arrive at ad hoc solutions with other countries.

12. The Ministry of Overseas Development's proposals, which are supported by the Foreign and Commonwealth Office, are explained in detail in the Annex to this paper. In brief, Her Majesty's Government would announce its willing- ness at the request of any overseas Government to assume full responsibility for the cost of pensions to expatriato officers in respect of pro- independence Government service, on the basis that we would take account of this cost in determining our aid allocation to the country concerned. This would include waiver of obligation or commutation and compensation loans. Resumption of aid to Tanzania would be possible. Her Majesty's Government's additional expenditure on pensions, to be met within the aid programme, is estimated at about 12 million a year, declining eventually, but not in the short term. The proposed waiver of compensation and commutation loan repay- ments would mean foregoing receipts contractually due of up to £53 million over 20 years (about £2.5 million a year in the peak repayment period 1975-86).

13. Under the Ministry of Overseas Development proposals we should refuse to assume responsibility for the cost of

(a) that part of expatriate pensions related to service after

independence (estimated to cost an extra £2.6 million per annum); (b) pensions to indigenous officers (estimated cost £10 million

per annum);

(c) pensions for quasi-Government service such as with local

government and universities (cost could exceed £10 million per annum);

(a) pensions paid by Governments of dependent territories

(about £850,000 per annum).

E

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