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CONFIDENTIAL

grant in aid. The position has now improved slightly mainly due

to increased revenue from the tourist sector.

Future Prospects and Action

3. Though not as strongly opposed to the idea of independence as the Caymans, perhaps because they have rather less to loose economically and because they are not so dependent on financial services for their prosperity, the Anguillans are not yet ready for independence. The island could however be brought to independence within ten years. Democracy is reasonably well established; the constitution is as advanced as it can be short of full internal self-government; the economy is viable and ought to grow stronger; and another five years of capital aid will complete the last of Anguilla's important infrastructure requirements. In addition the Anguillans might be encouraged to play a more active part in regional organisations, in particular the External Caribbean Currency Authority and the Organisation of

Eastern Caribbean States both for economic reasons and, by promoting contact with independent states, with a view to developing their own ambitions in that direction. Economic links. might also be possible with an independent Dutch Sint Maarten and the idea might be explored with the Dutch, as well as the French, who retain a dependency on the other half of the island.

VII ST HELENA

General

Main Imports

Food products, fuel, clothing, animal

feed, building materials, motor

vehicles, agricultural and other

machinery and spare parts

Total Imports (1984) Main Exports

-

£3.2

Total Exports (1984)

Main Industries

UK Aid (1985/6)

Budgetary

Shipping subsidy

m

- Dried fish, postage stamps,

handicrafts

- £0.03 m

-

Fishing, handicrafts

- £3.5 m

£2.2 m

CONFIDENTIAL

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