CAYMAN ISLANDS

"

RESTRICTED

1.

Independence not contemplated "in a thousand years".

Virtually no party policies. Intensely loyal to the Crown.

2.

Constitutionally not advanced but more local autonomy in practice than on paper. No demand for constitutional change of

any sort.

3.

Economy strong. Based on off-shore banking and companies

and on tourism. No aid given or required. Capital development

funded from surplus revenue and loans.

4.

The Caymans is a success story. It is now one of the

world's largest finance centres. It believes its present

prosperity depends on the stability which attaches a dependent

territory status. Seems quite determined that nothing should be

changed.

5.

Some reason to believe that drug money is occasionally laundered through the territory. Increasing cooperation with US agencies in this regard but evidence often difficult to obtain.

RESTRICTED

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