TNAG-0266-FCO40-302-Responsibility-of-UK-for-colonial-expatriate-pensions-of-Hon-1972 — Page 60

NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

CONFIDENTIAL

And in accepting an obligation to meet

part of a deficit in the CAPF, H.M.G. has

acknowledged an interest in the Federal

Public Service.

For the above reasons the F.C.o.

believes that the CAPF should be included

in a take-over. It is not possible to

estimate with any accuracy the likely

cost. The first actuarial valuation of

the Fund in 1965 showed a deficiency of

£7.6 m. A deficiency of this magnitude

is not envisaged at the next valuation

(1970) when any deficiency will

probably be accounted for by the sum

(£1.9 m. plus interest) left unfunded

from the 1965 valuation.

There can of course be no question of

taking over responsibility for the

Rhodesian obligation.

f) Somali Republic (Para. 43)

At paragraph 43, the Somali Republic

should have a, not a

g) Tanzania (Paras. 55 and 56)

The references to Tanzania in

paragraphs 55 and 56 are not acceptable

to the F.C.0. as they stand. We cannot

take for granted Tanzanian acceptance of

renewed aid. That is not to say that we

expect it to be refused; only that we

must have due regard to Tanzanian

susceptibilities. Nor would it be wise

to appear over-eager to resume aid since

this would suggest that the U.K. was the

guilty party and that Tanzania was right

to renegue on its pensions obligations.

CONFIDENTIAL

/I

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