TNAG-0266-FCO40-302-Responsibility-of-UK-for-colonial-expatriate-pensions-of-Hon-1972 — Page 58

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W(B)L 51-7406

CONFIDENTIAL

c) Post-Independence Service

The O.D.M. proposal relates to pre-

independence service only (paragraph 28).

Although most overseas governments are

likely to continue to accept their post-

independence pensions obligations

(amounting to some £3 m.), others may W

renegue on them nox or in the future.

Since our main objective in undertaking

this exercise is to remove a source of

irritation, or potential irritation, in our

relations with independent Commonwealth

countries, there seems to be a very strong

case for doing a thorough job and clearing

up all pockets of potential friction at

one fell swoop. There is the further point

th at taking over responsibility for

pensions involves a degree of connivance

at default on an obligation.

This is

inevitable in the situation that has arisen

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but is probably better to do at once

rather than twice. The F.C.C. therefore

consider that provision should be made now

to enable H.M.G. to pay the post-

independence portions of expatriate

pensions in cases where local governments

wish this and are prepared to pay a

capital sum in commutation.

We would not

however wish to press this to the point

where it was likely to affect Treasury

agreement to the scheme as a whole.

d) "Belongers" Para. 20(a)

Paragraph 20(a) is imprecise and we

would wish to be assured that, in the

absence of a P.C.A. agreement, the Minister

would consider that "belongers" who are

CONFIDENTIAL

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