SAMD
SED
FALKLAND ISLANDS AND DEPENDENCIES
GIBRALTAR
•
Present Constitution and Prospects for Independence
·
The Governor is advised by an Executive Council and there is a Legislative Council which, in accordance with constitutional changes likely to be approved, will in future have an elected unofficial majority. The Governor can act contrary to the advice of his Executive Council and he has the right to legislate by declaration, but either course could provoke a constitutional crisis. There is no demand for independence. There are no political parties and
· all classes are united by a desire to remain Eritish. But HMG's long term interest lies in a settlement of the sovereignty dispute with "Argentina.
No change has been made in the Linisterial form of Government introduced in 1969 in the context of the Spanish claim to sovereignty. External affairs, Defence and Internal Security are reserved to the Governor together with the right to intervene in financial, economic and other matters. In practice
he has consulted Ministers on most issues. Independence is not an option since, under the Treaty of Utrecht, Spain must be given first refusal if Britain should give up sovereignty. The Spanish border retains closed but Spanish leadership are coming to appreciate the necessity, if any sort of settlement is ultimately to be reached, for the removal of restrictions, and winning the confidence of the Gibraltarian people in respect of whom HG is pledged not to agree to sny transfer of sovereignty contrary to their freely expressed wishes. Frogress is likely to be slow owing to the constraints of the internal political situations in Spain and Gibraltar.
Considerations affecting Ai
Policy
The Islands are not grant-sided.
At present they are economically viable but are vunerable to world price movements in wool - their only product.
HMG remains committed to support and sustain Gibraltar. Economic activity is heavily dependent on UK inputs, particularly HOD. The Aid Programme agreed in 1974 is behind schedule, being handicapped by inefficient labour, shortege of materials and riting difficulties. Additional aid (including rossibly budgetary aid) may become necessary
CONFIDENTIAL