TNAG-0266-FCO40-302-Responsibility-of-UK-for-colonial-expatriate-pensions-of-Hon-1972 — Page 76

CONFIDE TIAL

cluding other dependent territories

could lead to considerable political

difficulties with the colony. (Hong

Kong's expatriate pensions liability is

only £650,00 a year and is not an open-ended commitment.)

As a fallback position, the F.C.0.

could acceptaan arrangement whereby

independent territories in which the

Public Service Commission had become

executive (e.g., Banamas, Bermuda and,

possibly snortly, Fiji) would be included

in the takeover, while in the case of

the others we would agree to take account

...

of their expenditure on expatriate

pensions in assessing their needs for

development aid - this would in any case

exclude Hong Kong.

(iii) Southern Yemen. A separate, but

related, problem under discussion is the

position with regard to Southern Yemeni

indigenous pensioners. The O.D.. has

declined to include these pensioners in

their current proposals and the F.C.O.

are therefore pressing this case separately

geared as it is to the special circum-

1

stances of Southern Yemen's independence.

A payer un this subject is at Annex

CONFIDENTIAL

/(iv)

NOTHING TO BE WRITTEN IN THIS MARGIN