TNAG-0429-FCO40-494-Programme-Analysis-and-Review-(PAR)-Future-of-Dependent-Terr-1974 — Page 129

CONFIDENTIAL

It does not seem worth retaining sovereignty over 5 of the 6 territories mentioned in paragraph 5 and 6 (ii) of the covering note. The possible fish and sea bed resources in the 200 mile EEZ off the British Virgin Islands, the Cayman Islands, Monserrat, the Turks and Caicos Islands and the Seychelles might make these territories economically soft sufficient and, therefore, ready for independence. The substantial tuna resources in the sea area round the Gilbert and Ellice Islands, however, and the possible existence of manganese nodules, quite apart from the rival United States claims to some of the islands, might justify a reconsideration of British policy to the Gilbert and Ellice Island Colony. The development of a large scale tuna fish industry and conservation of tuna fish in the area would involve heavy capital expenditure on ships with prospects of a sizeable profit.

While it is unlikely the UK could benefit directly from any oil found in the Caribbean sea bed, it could help the economies of the British territories there, if they were given some guidance on advantageous terms for themselves in agreements with United States oil companies. St. Vincent seems unnecessarily to have given exclusive proppecting rights to one company, and the British Virgin Islands, judging from the letters, seems to have been taken by surprise by the interest in oil prospecting off their coasts. I suppose it would not be possible to ask for "first refusel" rights in the purchase of a percentage of any oil found ?

R.S. Bishop

International Section Research

Department

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22.1.74

c.c. Mr Hitch Marine and Transport Department

Mr Hamylton-Jones Gibraltar and General Department Mr Preston Caribbean Department

Mrs Maccoll Dependent Territories Honomist Unit Mr Champion OBE Gibraltar and General Department

Mr Stuart Hong Kong and Indian Ocean Department

Dr Roberts Polar Regions Section Latin American Department Mr Dudgeon Karine and Transport Department

n'w Cox lie-luijsman CHS West Indian and Atlantic Department

Dr Hall Fisheries Adviser ODA

krxalxxxiistexartment

Mr Hazle Trade Relations and Exports Department

CONFIDENTIAL