(17865) Dd.145178 400m 5/73 G.W.B.Ltd. Gp.863

NOTHING TO BE WRITTEN IN THIS MARGIN

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territories for which you are responsible the pushin

will start sooner rather than later. We should be ber

advised to act ahead of events; though in territories

where there may be important seabed resources we

should commission up-to-date survey information before

taking a final decision on independence.

The

territories where we may have to accept association

with a third power (rather than independence) are

Gibraltar with Spain (independence ruled out by Treaty

-Subjur to safeguarding the essential defence facilitions-

of Utrecht) and the Falkland Islands with Argentina.

t)/al

We may also find it desirable to encourage the British

Virgin Islands to seek association with the US, and

the Turks and Caicos Islands with either the US or the

Bahamas.

3.

Financial Considerations/Aid Policy. At this tim

of financial stringency there may be opposition to a

policy of improving social and economic standards to a

level which certain territories cannot maintain out of

their own resources. But we need to remember that:

(i) some territories (eg St Helena and certain

Caribbean and Pacific islands) just are not

(ii)

(iii)

'economically viable'.

some other territories may become

'economically viable' in due course, but maj

require budgetary aid for a while after

independence, and indeed may not accent

accelerated independence without a prenise of

such aid.

we are not suggesting 'higher standards for

all territories' - only for those in which

the terri' ory-by-territory studies to be mod

in 197 show this to be desirable.

CONFIDENTIAL

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