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faced by many very urgent problems and there is a strong emphasis on further retricting Government expenditure, which augurs badly for larger handouts to Dependencies. This might presuppose a more modest policy, viz proceed with decolonisation in the Pacific where the momentum now seems pretty well assured, wait and see what happe "¦* in Bermuda after the publication of the Green Paper, concentrate on the Caribbean and the Associated States and keep options open in the Dependencies, proceed on lines already established over the dispute territories, and keep things going on St Helena etc on the lines of your draft. If we felt that this was the most realistic policy that we could follow for the time being I would envisage a submissi "' to this effect as a precondition to completing the individual count studies.
If you agree with this please circulate the papers to Mr Stewa and Mr Bullock with a view to a wigwam discussion as perhaps my fin contribution.
4.
H. Shimmery
HSH Stanley
19 July 1977
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