RESTRICTED
The
London, but confirmation may be sought from you. basic UK position is support for the principle of "self- election" by ldc's as beneficiaries, tempered only by considerations of "burden-sharing". This holds good for dependencies also. However, the "burden-sharing" consideration does mean that we need to know the decisions of other major donors before we can commit ourselves.
9. The second defensive point concerns the grant-aid received by most of our dependencies. This is shown clearly in the Estimates for the British Solomon Islands, and means that the territory in question has little real financial autonomy (though naturally there is no question of profits, however theoretical, being sucked back to the UK). It could be argued that if such territories became more viable economic units thanks to preferences, they would need less grant-aid, and the advantage would there- fore be to the UK Exchequer. Should this be raised, might point out that such dramatic economic advance because of the GPS is an over-optimistic proposition. need for preferences is rather to avoid discrimination and any further falling behind in the economic race. The dependencies not requiring grant-aid such as Bermuda and the Bahamas do have complete effective financial autonomy, while the ones which do receive it fully need all kinds of help available.
Yam ever
Пас
R G Britten
Trade Policy Department
you
The
Copies to:-
Mr Webster (WID)
Mr Massingham (PDTD)
Mr Cox (AIOD)
Mr Allen (Caribbean Dept)
Mr Miers (Arabian Dept)
Mr McCarthy (SWPD)
Miss Richards (UN(E&S)D) Mr Blain (CCD)
Mr Philipps (FPAD)
Mr Gilmour (Legal Advisers)
Mr Kemmis, CRE1, DTI.
Mr Meynell, Washington
Mr Hannay, UKDel EEC.
Miss Warburton, UKMis Geneva Mr Dorward, Hong Kong
J
Chanceries at: Canberra Wellington Paris The Hague' Stockholm
RESTRICTED