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financial sector, and was able to claw back some responsibility. Mr Turner pointed out that to date only one bank had been
established in BIOT.
However a system of generating revenue. only had one bank.
It was permitted to operate without a license. licensing might soon be introduced as a means of Miss Anderson said that the Falklands similarly
However, There seemed no threat of a stampede.
legislation would soon be passed vesting the licensing authority in
the Governor.
7. Mr Moody referred to the current interest in Gibraltar joining the OECD. Apparently the US had already investigated the question of membership for the US Virgin Islands. Legal Advisers had counselled that it would be difficult to extend membership to DTS. Mr Gibby replied that it had taken two years to establish that the OECD Convention did not apply to the Channel Islands or the DTs. No DT other than Gibraltar had so far expressed a wish to join, though
Jersey was particularly interested. There were essentially three problems. We needed to explore further the procedure for membership; we should analyse the implications of membership for
DTS, which were currently not clear;
and we should take account of
the interests of the member countries. Mr Gibby undertook to look
into these matters with a view to a more detailed discussion at the
September DTLG meeting.
Item 3
Constitutional matters
8.
Mr Wallace introduced his paper (copy attached). He explained that the paper was most relevant to the DTs for which WIAD was
responsible. It did not address the question of whether
constitutional advance should be permitted in those Territories
whose constitutional structure was least developed (eg Caymans) to
enable them to catch up. The 1987 Policy Review had not been clear
on this latter point. Mr Wallace's personal view was that
constitutional advance should be permitted in such cases as long as
it fell short of encroaching on normal reserved powers. Paragraph 2 of his paper addressed the difficulties of implementing the 1987 Policy Review line. Paragraph 3 set out the minimum reserved powers
which HMG must retain. The survey of DT Constitutions, referred in paragraph 4(i) should include a review of financial provisions.
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