TNAG-0266-FCO40-302-Responsibility-of-UK-for-colonial-expatriate-pensions-of-Hon-1972 — Page 74

CONFIDENTIAL

Statale dig way statute - Gare Banan Ka

pre-in

enäence service.

The extra cost

of this proposal would be some £11.5m. per

annum. This will be accommodated within the

Aid Programme, which is expected to rise from

£227m. to £245. in the financial year 1971/72.

This O.D.. proposal would remove a

•

oùr

long-standing irritant in our relations with

independent Commonwealth countries.

The re

is growing pressure on the U.K. to accept

responsibility for the payment of expatriate

pensions. The most serious form this has

taken is in Tanzania which repudiated her

obligations with the result that we were

4.

cbliged to cut off aid. Kenya shows distinct

our

3j.

signs of following suit and other countries,

possibly less dependent on our aid or believing

that we will submit to pressure, are likely

to follow suit sooner or later.

present position has a perfectly logical

Although our

basis and has been hallowed in independence

agreements it is an issue which rouses many

strong emotions in many "new" countries which

11

find themselves forced to foster an emergent

1

and often extreme nationalism.

*

E. In the 7.0.0. view, the C.D.. proposals

in cutain respects

do not go far enough.

2.C.0. Reservations

NOTHING TO BE WRITTEN IN THIS MARGIN

Detailed discussion of the proposals will be pursued

at the meeting of officials

Le

mail issue

(i) Post-Independence Service

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

independence service only (paragraph 28).

CONFIDENTIAL

/Although

13 Jummary

but the forme the Foo point of vias