TNAG-0266-FCO40-302-Responsibility-of-UK-for-colonial-expatriate-pensions-of-Hon-1972 — Page 67

CONFIDENTIAL,

any deficiency in the Fund, the balance being contributed

by Southern Rhodeaia (45%), Zambia (22.5%) and Halowi (7.5%).

In the view of Zambla and Kaluwi, federal service pre-

dated their independence and they will argue strongly that

federation was imposed on them against their vill by

Britain and that the U.K. should therefore accept

responsibility for meeting the Zambian and Malavian shares

of any future deficit in the Fund.

And

Although the Federal Service was local to the extent

that officers were recruited from the three territorice,

they wore not necessarily citizens of the Federation,

in accepting an obligation to meet part of a deficit in

the CAPP, H.M.G. has acknowledged an interest in the

Federal Public Service.

For the above reasons the F.C.0, 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 ang

acticiency will probably be accounted for by the sum

(£1.9 n. plus interest) left unfunded from the 1965

valuation.

There can of course be no question of taking over

responsibility for the Rhodesian obligation.

CONFIDENTIAL

/(dv)