groupings and thus an effective opposition.

Both groups

The economy

were firmly opposed to constitutional change.

continued to boom, with some $60m. worth of construction in

hand. The effect of the boom was now being monitored and there was a need to ensure that its social effects were not neglected. Banking operations were believed to be clean but there could be no guarantee that there were no malpractices in company registration. Close relations were maintained with the FBI to seek to ensure that money from durgs operations was not

laundered in the islands.

e)

7.

Montserrat

It was

}

After 18 years in office, the left wing Bramble regime had been replaced in 1978 by the right wing laissez-faire

capitalist Osborne regime. The new Chief Minister was very much in command and had brought stability and confidence.

expected that he would win the 1983 election. The economy was on the move and the island was now out of budgetary aid. There was a pressing need however for a reasonable sized hotel and a new or realigned airfield. It would be useful to know

whether a Club Med type aid allocation could be made available if necessary. The present government put economic independence before political independence, but provided the former could soon be achieved, the latter might well follow by 1985.

f) TCI

8. In the last year or so, the political scene had been dominated by the agreement, subsequently abandoned by the previous Government, to an aid package linked to independence

3

PERSONAL AND CONFIDENTIAL

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