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the area, dubious investment deals, and difficulties with
UK/US relations because of jurisdictional and political
conficts that have arisen between US extra territorial
claims and banking secrecy). It is possible that the conclusion of the UK/Cayman/US Mutual Legal Assistance
Treaty will in the long run lead to a more secure financial future without these continual conflicts, and will make the
Cayman Islands more attractive to reputable and established
businesses. It is intended that all the Caribbean dependent territories (except Bermuda) should eventually have similar agreements with the US;
(g) one constant rather than new factor which has always
affected the prospects of the Caribbean dependent territories in particular, is the effect which tourism has
on the economies of these territories as a variable but
constant source of revenue.
IV THEORETICAL OPTIONS
8.
Several theoretical options, ranging along the spectrum fromn abandoning our responsibility to a close continuing relationship,
are considered here for the 12 dependent territories. In practice
some are not realistic options for the Territories, others are not serious options in the short-term but could be feasible in the long term. Nevertheless, each option is described in general and, where relevant, considered with a particular territory in mind.
9. Separate Independence : this was suggested by the 1973 review
for dependent territories not affected by unresolved territorial claims, continuing treaty obligations or HMG's requirements. Special inducements to become independent in the face of persistent local reluctance were considered eg aid guarantees, minimal defence arrangements or offers of overseas representation on independence
along the lines of the 1962 New Zealand treaty with Western Samoa,
This provides that New Zealand consults on matters of mutual
interest and concern, undertakes consular protection and acts as an
agent in foreign affairs when requested to do so. In the case of
defence arrangements, the need to secure a guarantee from a friendly
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