. 1

Another

in 1982. The new Government's policy was to develop the

economy, though ironically their first step was to go back

into budgetary aid. The Club Med project had awakened

interest in TCI and there was now increased activity in

areas such as fishing, banking and air communications.

look should perhaps be taken at the estimated cost of the port

required if the salt industry were to be revived. The US was

now actively assisting in control of drug traffic through the

islands and would, it was believed, continue to do so. As to

the future, the new Government was not interested in early

constitutional change, though independence might be an issue

at the next general election. A link with the Bahamas,

favoured by the US, or even with Bermuda, was a non-starter as

far as TCI Ministers were concerned.

9.

In a discussion of the situation in the TCI, Mr Ridley

said that he now felt that the offer of an associated independence

and aid package had been a mistake.

would be needed in the future.

10.

Some more subtle tactic

Briefly summing up the discussion, Mr Ridley said that it

was encouraging to note how much economic progress had been

achieved in many of the dependent territories. He hoped that

there would be further progress in the march towards independence;

the problem was not that we were now experiencing problems in

dealing with the remaining dependencies, but their potential for

causing difficulties for us in the future.

Item 4:

UK/US/Canada policy in the Caribbean

11.

Introducing this item, Mr Ridley said that he thought It

would be useful to concentrate on HMG's policy and interests

4

PERSONAN AND CONFIDENTIAL

/in

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