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all very emotive concepts in British politics.
2.
If tac proposal could be kept strictly confidential it would certainly serve as a means of continuing the dialogue with the Spaniards and or showing animus norotiandi, but it seems bound to become public sooner rather than later. If it does, it would affect our position in our territorial disputes with Guatemala over Belize, and with Argentina over the Falkland Islands: it could also affect our position in Hong Kong. It would increase the pressure from Argentina to recognise their sovereignty over the Falkland Islands and from Guatemala
This might not matter their sovereignty over Belize. too much in the Falkland Islands; indeed, it might form the basis for an eventual solution.
But it would
the
seriously undermine our present stance in Belize
Guatemalans would seize on it with delight as a desirable procedent. Its effect in Hong: Ron; might be less significant but there could be awkwarú roporcussions
there too.
3.
As a result of our PAR exorcise about the future of the Dependent Territories, we hope that Ministers will agree that we should encourage towards independenco all those territorics were there are no special problems. We hope they will also ask us to have a new look at such possibilities as we can dream up which might help us to get out with honour from Gibraltar, the Falkland Islands and Belize. A formal transfer of sovereignty might well form the basis of an eventual solution for
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