CONFIDENTIAL

· 3 -

DSR 11C

the Dependent Territories will continue to be a first call on

our aid programme. In deciding how aid resources should be

used in the Dependent Territories, our principal objective will

be to increase the Territories' ability to rely on their own

resources, although we recognise that in some ferritories the

possibility of full economic independence is remote. In the

past, a generous allocation of development aid, and in certain

often cases also budgetary aid, has formed a vital ingredient in

achieving the final independence agreement. The possibility of

similar action in future cases will continue to be borre in mind

6. Although our preference will remain for a straight choice

between continued dependency or full independence, we shall

always be prepared to consider on their merits any proposals

for alternative arrangements that may be thought appropriate

for particular Territories. This may include association or

integration with the UK, or even with another country, but will

certainly not again include the relationship provided for under

the 1967 West Indies Act which led to the creation of the West

Indies Associated States. Our experience since 1967 has

clearly demonstrated the drawbacks of an arrangement which left

us answerable for the consequences of policies over which we

had no control.

7.

I am addressing this despatch to all officers administering

the governments of British Dependent Territories, and to the

British Resident Commissioner in the New Hebrides; and I am

sending copies to the UK Permanent Representative at the United

Nations, to HM Ambassadors in Washington, Mexico City, Madrid

and Buenos Aires, and to the British High Commissioners in

Ottawa, Canberra, Wellington, Georgetown, Port of Spain,

Kingston, Bridgetown, Nassau and Suva.

CONFIDENTIAL

Dd 0532000 400 M 5178 HMSO Bracknell

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