TNAG-0266-FCO40-302-Responsibility-of-UK-for-colonial-expatriate-pensions-of-Hon-1972 — Page 77

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NOTHING TO BE WRITTEN IN THIS MARGIN

(iv) Central African Federation

The O.D.M. (paragraph 40) do not propose to include pensions in respect of service to

the former Federation of Rhodesia and

Nyasaland in the take-over because:

(a) the Federal Public Service was a

wholly local public service.

(b) Federation pensions are all post-

independence pensions.

(c) Federation pensions are covered by the Central African Pension Fund (CAPF)

The CAPF was set up at the dissolution

of the Federation. H.M.G. is responsible

for making good 25% of any deficiency in

the Fund, the balance being contributed by Southern Rhodesia (45%), Zambia (22.5%) and Malawi (7.5%).

In the view of Zambia and Malawi,

federal service pre-dated their independenc

and they will argue strongly that

federation was imposed on them against

their will by Britain and that the U.K.

should therefore accept responsibility for

meeting the Zambian and Malawian shares of

any future deficit in the Fund.

Although the Federal Service was local

to the extent that officers were recruited

from the three territories, they were not

necessarily citizens of the Federation.

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

CONFIDENTI AL