means of directions given by the Governor under Section 55 of the constitution. I consider that, generally speaking, the matters of do- mestic concern to be devolved should comprise the matters which have hitherto been within the competence of the City Council and the existing Council of Ministers. These, broadly speaking, fall within certain well defined spheres, as for example, municipal and public utilities services (e.g. electricity, water), social services (e.g. housing, public health, labour and social security, and education); and matters which clearly affect the economy of Gibraltar (e.g. tourism and trade and commerce). Directions specifying the defined domestic matters should be given at the stage when the constitution has been brought into operation and the Ministers are appointed following the General Election. You have, however, recommended that particulars should be made known in advance for general information. Accordingly I annex to this despatch a list of matters which in my view should be It must be recog- specified as defined domestic matters at that stage. nised that this list may need adjustment from time to time. The de- volution of authority to Ministers in defined domestic matters should also be read as subject to what is said in the following paragraphs of this despatch.
4.
The Governor will retain direct responsibility for all matters primarily concerned with external affairs, defence and internal secu- rity, including the police, and for such matters as, by reason of their close connection with these matters, would most appropriately be pla- ced under the day-to-day control of the Deputy Governor, the Attor- Since ney-General or the Financial and Development Secretary. everything which is not a defined domestic matter automatically re- mains within the Governor's direct responsibility, it is unnecessary and undesirable to attempt an exhaustive definition of all matters re- tained by the Governor. It is desirable, however, to draw attention to certain general exceptions which must qualify the list of defined domestic matters, in the sense that wider considerations would re- quire responsibility to be retained by the Governor even though the subject matter may at first sight appear to be "domestic." Such ex- ceptions should, in my view. include all matters relating to Her Majesty (for example honours, flags, etc.); the application to Gibraltar of international agreements, the implementation in Gibraltar of in- ternational obligations and the participation of Gibraltar in speciali sed international bodies; matters affecting the armed forces and Uni- ted Kingdom civilian departments in Gibraltar, including their land and property, facilities provided by them (e.g. schools and hospitals) and their privileges and exemptions; labour from outside Gibraltar;
2