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ANNEX A

THE FUTURE OF THE DEPENDENT TERRITORIES

1.

Since the second World War HMG's overall policy towards the Dependent Territories has been straightforward: where possible to bring them forward to eventual independence. But we are now approaching a turning point; for one reason or another most of our remaining dependencies can no longer follow what we have come to

regard as the normal path to independence. It is, therefore, timely to review our policy on their future. That is the purpose of this paper, the timescale of which is the next five years, that is until the end of 1980.

Background

2.

Ignoring Southern Rhodesia, and also the five Associated States (Antigua, Dominica, St Kitts-Nevis-Anguilla, St Lucia and St Vincent), which are the subject of a separate policy review, we are concerned with about five million people in a land area of nearly 700,000 square miles. 80% of the inhabitants live in Hong Kong; the British Antarctic Territory (BAT) which has no permanent population, takes up 95% of the land area. The remaining territories include about one million people and cover 34,000 square miles of land. See Annex A.

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Our possession of these territories is a legacy of the past; we acquired them for historical reasons which are no longer valid. most cases they are of limited or no intrinsic value to us. But their continued dependence involves a significant political cost; it means that we are liable to have to take the rap for locally engendered crises, and accept international criticism for "colonialism" irrespective of the standards of administration which we provide;

our political and economic relations with countries which have territorial claims against them may be impaired; and we have to accept defence commitments which we might otherwise be able to get rid of; we may be required to divert to them administrative and

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