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6. You also raised the question of integration. This is only

under active consideration in the case of St Helena where we have said that we would explore a suitable form of association or integration, for example, with a UK local government authority, although we are unlikely to be able to put anything like this into effect before the future status of Gibraltar and the Falkland Islands is clearer.

7.

We have told the Gibraltarians that we consider integration to be neither desirable nor practicable. Our view is that the present constitution and the pledges given by the British Government adequately safeguard the position of the people of Gibraltar, both constitutionally and economically. We have also said that in view of recent developments in Spain, and in order not to inhibit the development of a more favourable Spanish attitude towards Gibraltar, it would be best to avoid such innovations.

8.

The possible integration of the Falkland Islands into the UK is not an option which has been considered in recent years and is certainly not part of our present thinking. The question has, however, been raised in the past by the Falkland Islands Committee. Our line has been that integration would not lessen the Argentine claim, nor would it change the existing geographical and economic facts of life. The Committee seem to have accepted this, for in 1974 they said in a paper: "The colonial status of the Islands is agreed to be indefensible in 1974, but even if the Islands were to become an integral part of the UK, there would only be an alteration in their status on paper - the Íslands would still be 7,000 miles away, the population still only

1,900 and declining further

13 April 1978

W. E. Chantill

WE Quantrill

Hong Kong & General Dept

Cc:

PS/Mr Rowlands

Mr Stratton

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