CODE 18 -77

CONFIDENTIAL

Reference.....

72.

As to size, island civil services might look generously staffed. But there were often as many different specialist functions to be performed in administering a small territory as a large one. It was difficult to reduce police, nursing and teaching staff and numbers of secretaries and clerks were on the whole small.

77.

Mr Jones supported the paper feeling that the first require- ment of a civil service was to work effectively and it could only do so in a locally acceptable way. We had to recognise that Ministers wanted a pliant civil service to carry out their wishes without question and as a field for patronage.

But it was the

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general view that we must keep control of civil services and try

to influence performance right up to the point of independence. There were certainly defects in the small island services especially where family ties were obiquitious. »tandards could be improved through training and example: they could not be cured by re- organisation.

74.

The Conference therefore say no basis for a complete new approach to civil service management; civil services had to evolve locally under Covernors' guidance with training and O and i advice. The PSCs were effective and highly respected in Belize, BV1 and the Caymans and no better sysiem could be suggested.

THE PRIVATE SECTOR

35.

The problem was twofold. How to attract the foreign investor and then how to retain his interest and involvement in a way which was to the territories' advantage. A WIAD paper had been circulated earlier and the Conference was asked to suggest how London and the Dev Div could best help. The obstacles were considerable but the territories could not be choosy since any investor could call his own tune. Investors were on the look out for all the concessions they could get and there were bound to be a few sharks greedy for the quick buck.

76. There were several proposals. There would be difficulties in appointing a regional TCO investment adviser based on the Develop- ment Division since all the islands were in competition with each other. But short term consultancies could be provided to advise on specific sectors and problems. In addition local commercial banks ought to be eager to assist if there was a chance of good business.

37. It was poin ted out that the need was not for advice but for salesmen. In the Caymans this was well done by the Chambers of Commerce working through other Chambers, Rotary Clubs etc in chosen towns in North America. A team of consultants was at present at work in St Vincent trying to identify new possibilities for private investment. If this was a success it could be tried elsewhere but much depended on local initiative.

38. Sir Bruce Greatbatch acknowledged that there were enormous obstacles facing a country with as few resources for example as Anguilla. Luck played a big part. If the right opportunity came it had to be seized. At that stage experts from the British Executive Services Overseas could be very useful. Industrial development of some sort was likely to be an essential part of the healthy survival of all the islands and the Development Division would be continuously on the lookout for openings for private investment. There was no easy way forward.

9 CONFIDENTIAL

/TAX HAVENS

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