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much of the expenditure is in the form of development assistance
which would continue after independence. Against this, there are
obvious disadvantages in pressurising territories into independence
when they do not want it. If things went wrong as they might
well do in the case, for example, of the Cayman Islands, where
the territory's prosperity and stability are based on the British
connection - our international reputation would be damaged rather
than enhanced. And we might find ourselves having to mount
expensive rescue operations.
8.
I therefore believe that the policy which we have consistently
pursued over the past three decades remains the right one. That
said, our remaining dependences are so few, and so diverse that
each case must be treated on its merits.
9. The Secretary of State may wish to discuss the Memorandum
within the Office. At some stage he may wish to circulate it
to his OD colleagues for their agreement.
It would if possible
be useful to get guidance to Officers Administering Governments
before the end of the year.
R JT McLaren
25 October 1979
Hong Kong and General Department
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