II
CONFIDENTIAL
MONTSERRAT
General
Main Imports
Total Imports (1984/5)
Main Foreign Currency
Earners
Total Foreign Currency
Earnings
Main Industries
Food, drink, fuel, machinery, transport equipment manufactured goods and raw and processed construction
materials
-
$53m (estimate)
Tourism, agriculture, manufactures (leather, plastic, electronics)
N/A
P
Light industry (electronics assembly), Agriculture, Tourism
UK Aid (1985/6)
Capital
T.C.
£1.5m
£0.23m
Economic
1. Montserrat is heavily dependent on tourism, but the government is making efforts to re-develop the agricultural industry, notably the manufacture of sea-island cotton on which a lot depends. Light industry, eg electronics assembly, is also being encouraged. The government believe however that the development of the tourist industry will be crucial for the future of the island's economy and to this end is placing
priority on the construction of a hotel and marina complex at Little Bay. The Development Division in Bridgetown has provided aid funds for feasibility studies to encourage private investment in the project. Pensioners, mainly Americans, who construct retirement homes on Montserrat contribute significantly to the
economy.
Future Prospects and Action
2. Though the economy has continued to grow slowly in the last decade there is a danger that, without further economic development, the territory will lapse into dependence on the UK
for budgetary aid, putting back any moves towards independence.
Montserrat was last in receipt of budgetary aid in 1981.
It now
CONFIDENTIAL
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