STAFF IN CONFIDENCE
DISCRETION FOR EXECUTIVE DECISIONS
7. Executive authority is exercised by the Governor on behalf of Her Majesty, ie the Governor is the Chief Executive upon whom all authority rests for making decisions. However, the Governor is obliged to consult with the Executive Council in the formula- tion of policy and to act on that advice except in certain special circumstances.
INVOLVEMENT IN THE JUDICIAL PROCESS
8. The Prerogative of Mercy is exercisable by the Governor after consultation with a Statutory Committee but in his own deliberate judgement. In the matter of appointments to legal and judicial posts he is advised by a Judicial and Legal Service Commission. He takes no other part in the judicial process.
SECURITY
9. There is no external threat. Internal security is a potential problem owing to strains which arise from the social and economic pressures created by the rapid economic advance of the territory in the last few years. The high proportion of young people in the territory is also becoming increasingly influenced by the prevailing attitude of racial antagonism in the neighbouring US Virgins where there is also an exceptionally high crime rate. Civil disorder was forecast earlier this month as a result of the Governor's decision to reprieve a convicted murderer. The precautionary stationing of a frigate nearby and the Governor's cool handling of his rebellious Executive Council averted disorder.
THE FUTURE
10. Independence could perhaps be best sustained after a link-up with the United States Virgin Islands but there is no evidence that BVI Ministers are anxious to press this or that US reactions are likely to be at all favourable. The Chief Minister has publicly stated his intention to seek full internal self government in 1980 but it would appear he does not understand that this could only come within the context of an agreed independence timetable. Our immediate concern is to ensure that there is an effective government machine, with proper financial controls, able to foster economic development so that the timetable for the elimination of grant-in-aid will be adhered to.
POLITICAL AND ADMINISTRATIVE ROLE
11. The people still suffer from the general Caribbean complex about slavery. They are courteous but volatile and independent minded. They resent their current dependence on grant-in-aid. Being nervous of developments in the neighbouring US Virgins as well as being concerned about their own economic future, they do not seek independence, yet they want their own local Governor. The Chief Minister did nothing to prevent the recent impeachment in the Legislature of the British Attorney General and Chief of