CONFIDENTIAL

Argentina.

Islanders' (and British) resistance to Argentine claim

to sovereignty strengthened by events April June 1982. Wish to remain British. No pressure for independence.

Gibraltar

8.

(Population 30,500)

Ministerial system of government; Governor has usual reserved powers. Independence blocked for political reasons (Article 10 of

the Treaty of Utrecht; if Gibraltar ceases to be a UK dependency, Spain has first claim on territory). 1976 referendum confirmed overwhelmingly Gibraltarians' wish to retain UK connections.

Hong Kong (Population 5,207,000)

9.

Constitutional advance inhibited by fact that New Territories

lease is due to expire in 1997. Future of Hong Kong currently under discussion by British and Chinese Governments. Hong Kong has Executive and Legislative Councils (appointed members only) which advise Governor. British Government responsible for defence and

foreign affairs, but Hong Kong Government has considerable autonomy

in internal affairs, external trade and economic matters.

Montserrat

10.

(Population 12,000)

Constitutionally advanced; very few powers remain to

Governor. A Ministerial system of Government. No indications of wish to proceed to independence; but this could change at any time.

CONFIDENTIAL

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