CONFIDENTIAL
FALKLAND ISLANDS AND DEFENDENCIES
GIZRALTAR
Present Constitution and Prospects for Independence
The Governor is advised by an Executive Council and there is a Legislative Council which, in accordance with constitutional changes likely to be approved, will in future have an elected unofficial majority. The Governor can act contrary to the advice of his Executive Council and he has the right to legislate by declaration, but either course could provoke a constitutional crisis. There is no demand for independence. There are no political parties and all classes are united by a desire to remain
sh.
But HMG's long term interest lies in a settlement of the sovereignty dispute with Argentina.
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To change has been made in the linisterial form of Government introduced in 1969 in the context of the manich claim to sovereignty External affairs, Tefence and Internal Cecurity are reserved to the Doverver together with the right to intervene in financial, economic nd other matters. In practice he has consulted inisters on most issues.
Considerations affecting Al
Policy
The Islands are not grant-aided. At present they are economically viable but are vunerable to world price movements in wool - their only product.
MG remains committed to cur nd ustain libraltar. concric activity is heavily dependent on UK inruts, particularly.CD. Aid Programme agreed in 1974 is behind schedule, being handic n by inefficient labour, materials nd isin ifficulti ditional id (including 100 budgetary id) may become necer
CONFIDENTIAL
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EXEMPTION No 27 (1) a,b,s.ad