§ Mr. Lathamasked the Secretary of State for Foreign and Commonwealth Affairs what discussions he has had with the Government of Zambia regarding the payment to British subjects resident in the United Kingdom of pensions or interest upon capital lawfully due to them from Zambia; and whether he will make a statement.
§ Mr. RaisonThe Zambian Government pay interest on blocked capital when it is due under the terms of the original contract, but not otherwise. The overall problems of delays in securing the external payment of remittances of all kinds from Zambia was a major theme in our talks with President Kaunda during his state visit in March last year. He gave assurances that Zambia would accord this problem a high priority. The subject was again raised by my hon. Friend the Minister of State, Foreign and Commonwealth Office, during his recent visit to Zambia. Zambia's acute shortage of foreign exchange is bound to be a severe limiting factor.
Pensions are not generally affected by the exchange control measures and despite some administrative delays Zambian pensions are being remitted externally. We have entered into an agreement with the Zambian Government to take over responsibility for the payment of the pensions of certain former public servants who were recruited by, or under the direct auspices of, the Secretary of State for employment on expatriate terms. We hope this will come into force in 1985.