RESTRICTED

Mr Stuart

HKIOD

Mr Cox

WIAD

Mr Bullock

PDTD

Mr Preston

Caribbean

Mrs Maccoll

DTEU

Mr Kerr

FRD

Mr Rae

ODM

Mr Ensor

ODM

THE FUTURE OF THE DEPENDENT TERRITORIES

1.

As you know, Ministers were reluctant to take the 1973 FAR to the OPDC for two main reasons. Firstly, because the FAR framework itself is geared to an assessment in financial terms of the costs and benefits to HMG of alternative policies, it was illsuited to this particular subject, where the costs and benefits are essentially political and not financially quantifiable. Secondly, the 1973 PAR considered the problem exclusively in terms of HMG's interests, with scant regard for the inhabitants of the DTs themselves. Moreover it is now over a year since the 1973 PAR went to print; it is already dated, and is no longer really suitable for resubmission to Ministers as it stands.

2.

Nevertheless policy decisions are still needed on the future of the Dependent Territories; the questions raised in the 1973 PAR are still valid and still require answers.

3. I have, therefore drafted a completely fresh paper on the Future of the Dependent Territories, with a fresh draft covering memorandum to OPDC. These drafts draw heavily on the text of the 1973 PAR but they eliminate unrealistic assessments of financial costs and benefits, and they seek to give equal weight to the interests of the inhabitants of the territories as well as those of HMG.

4. I enclose copies of the new drafts (in the case of geographical departments only, together with the Notes on individual territories for which they are responsible referred to in paragraph 3 of the draft paper as you will see they are derived from the country papers in Annex J of the PAR). Mr Larmour, who has seen these drafts, has asked me to invite your comments and suggestions before the drafts are more widely circulated outside our "family circle".

5. After comments have been received we may wish to convene a meeting to settle any outstanding points of difficulty which may arise, but I hope to avoid unnecessary detailed drafting in committee.

27 November 1974

c.c.

Mr Larmour

J.S. Champin

J S Champion

Gibraltar & General Department

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