CONFIDENTIAL
10.
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As for the next steps, Richard Dalton gathered ? from HM Governor Grand Cayman that you are thinking
of inviting delegations from the problem territories to London to discuss modifications to their constitutions in the light of HMG's reluctance to see them move forward too far if independence is not in sight. am aware that this has not yet been considered by Ministers. If it becomes policy, I would ask that in each case when preparing MHG's position for the talks the UN strategy which I have outlined be borne in mind. Indeed you might be able to strengthen your hand with local politicians reluctant to accept change, by arguing privately that HMG has to steer its policies through the UN, notably in the interests of UK standing as a whole, but also in the interests of the territory in that it would rid itself of the requirement to report to, and be the subject of examination by, the UN.
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11. You will have a clearer idea than I about which territories would be more susceptible to this treatment than others. We should obviously seek to establish the pattern with the easier ones. Integration of St Helena with the UK might be a good one to place near the front. We look forward to seeing Patrick Duff's report on his current visit, as it might give us a peg on which to hang a further practical illustration of the procedure I have in mind. There is however one general and important caveat. This must be a confidential policy and almost an ad hoc one. In public, deletion of the particular territory from the list when not fully independent must be seen as the logical outcome of an expression of will by the people concerned that they retain links with HMG. If all went well it might come to look in time as though it were a policy conscioudy pursued across the board, but we must not be the first to describe it as such.
12. So far as the Caymans are concerned, there is little more that I need add to the scenario suggested in paragraph 5 of HM Governor Grand Cayman's tel. no. 75 to FCO of 25 April. The crucial questions are whether the Caymanians can be brought to consider any change at all, and whether the "status just short of internal self-government" mentioned by the Governor is acceptable to you.
I am confident that it could be sold to the UN as amounting to decolonisation if it could be the subject of a second report by a sympathetically composed mission sent to observe a referendum.
-6- CONFIDENTIAL
/Finally,