CONFIDENTIAL

(a) the security of small entities whether States or dependent

territories. This has been an object of international

concern since the interventions in the Falklands (1982) and

Grenada (1983);

(b) changes in the law of the sea context and the general

acceptance of the 200 mile exclusive economic zone;

Anguilla, Bermuda, British, British Virgin Islands, Cayman

Islands Montserrat, Pitcairn, St Helena, St Helena

Dependencies and the Turks and Caicos Islands all now have

200 mile fishery limits. The (3 mile) territorial waters

limit of the dependent territories is currently under

review. Any extension would be facilitated by the extension

of the UK's territorial waters;

(c)

the world wide concern over drug smuggling very evident in

the Caribbean. A number of international and regional

conferences on the problem are being held this year and next

to discuss narcotics.

(d)

(e)

(£)

the concern for rights manifested by both governments and

non-governmental organisations For example the dispos

sessed Ilois (formerly of "BIOT") are currently considering

whether to negotiate a better compensation settlement with

the British Government. If they do, and negotiations are

not begun the case may well be taken to the British courts;

the growing strength of environmental/Greenpeace lobbying.

This is evident for instance in the current concern over the

Antarctica minerals negotiations and turtles in the Cayman Islands. Pressure from environmental groups also influenced

HMG's decision not to proceed with the sale of Henderson

Island;

the policy of encouraging the Caribbean dependent

territories to develop as offshore financial centres (bringing with it considerable disadvantages such as the increase in the level of internationally organised crime in

CONFIDENT TAT

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