CODE 18-77
to MR DALE WHAT
MA BLATTIE DIE
Then R+R. Noundly.
JJeśli
Mr JS Jasper
K 270
CONFIDENTIAL
Hong Kong and General Dept
Reference
жка HKG 025/2
RECEIVED IN BECKY NO. 51
25 JAN 1978
DESK OFFICER
INDEX
PA
KEGISTRY Action Taken
VES
JJ.
18
REVIEW OF POLICY OF ACCELERATED DECOLONISATION
Many thanks for sending me the preliminary papers on thi s subject. I have made a few notes of points that occur to me. I am afraid they are expressed by way of generality. In dealing with five separate territories one should have regard to each but I believe that some of the points made are general to some, if not all, of the territories.
BACKGROUND
2. The main thrust of your argument, as I see it, is that financi al settlements should be made as inducement to the Dependencies to move to independence. There should also be some assistance with diplomatic support and perhaps a defence umbrella. The other side of the coin
is presented by Research Department and Planning Staff who query whether or not the Dependencies would be capable of sustaining independence regardless of financial support because of the Dependencies unknown political and general economic capabilities and of the questionable desire for independence. I believe that a short review of the history of these islands reveals that your solution is well founded provided there is a much larger manpower input.
HISTORY
3. (i) Ethnic. It is interesting to note that the five territories are all within the Caribbean area. The lack of apparent desire by these territories for independence is, for instance, in contrast to the Pacific Dependencies. Some answer may perhaps be found in the temperament of the islanders of the five Dependencies. They do not
derive from indigenous populations. Most, if not all, were settled in the mid-17th century and later. Many inhabitants are descendants of slaves imported from America, particularly after the Civil War. Their populations are largely migratory; travelling to Bahamas, Jamaica and America and on boats in order to earn a living and remitting money back to relatives.
(ii) Economic. Save perhaps for Bermuda, there has been no long- term economic development in any of the territories. Cayman has built itself into a tax haven together with a small tourism indus try and is, after Bermuda, the most advanced economically. But that economic growth was undertaken despite HMG's assistance rather than with it. HMG has consistently frowned on the sort of tax havenry that has induced the Cayman economic boom and has in fact virtually stopped it in Turks. Leaving aside Bermuda (which has probably benefitted from its strategic position as far as the aviation industry is concerned), there has been no cohesive economic input by HMG in any of the territories. Whilst there has been financial input to cover recurrent expenditure there has been little proper capital input. For instance, when Turks required capital input to up-date the salt industry, HMG refused. Consequently Inagua, a neighbouring Bahamas island, was privately developed and is now a source of
/continuing
CONFIDENTIAL