Mr Wallace
Mr Hope
PS/Mr Luce
CONFIDENTIAL.
Hav ond
A
VALEDICTORY DESPATCH: BVI
1.
As Mr Luce will be seeing Mr Davidson, retiring Governor of
the BVI on 9 February, I submit his valedictory despatch. This
minute can also serve as a brief.
The
2. It has been another good year for the BVI economy despite a fall-off in tourism and doubts about the US/BVI Double
Taxation Convention which made investment less attractive.
same cannot be said for BVI/Whitehall relations which have been strained considerably over one or two issues where we
stood firm. It is a pity that the Governor found patience
the only formula for stability as this was seen by Ministers as weakness and exploited. A degree of firmness may have met with more success and prevented some of the clashes.
3. The despatch is unfortunately inaccurate and misleading throughout. I will mention briefly three points. It was not early on in Mr Davidson's term of office, but in April 1980, that the police force was reported to be'dispirited, demoralised and disaffected'. That report was considered by the Governor and others to be exaggerated. However, Mr Davidson rightly pays tribute to the new Chief of Police who has brought about a considerable improvement in the police force throughout 1981. The calendar of events attached to the
despatch refers on 30 March to the revocation of the licence
of the disreputable Merchant and Mariners Bank. This was not in fact necessary as the bank went into voluntary liquidation, but only after it had operated for some 18 months. The Governor did not start the campaign for a reduction in the sentence of life prisoners the foundations were laid before
his time.
4.
Mr Davidson has sometimes confused being popular with being
/a
CONFIDENTIAL